Sharia-Compliant Stablecoin Named Coin M to Be Launched in UAE
Interest in cryptocurrencies has been growing steadily all around the world in recent times. The latest significant development in this sector comes from the Middle East. Coin M is a Sharia-compliant currency to be launched in the United Arab Emirates.
How does it work and what could this launch mean for the worldwide cryptocurrency market?
About Coin M
The company that will create this digital coin is called the Golden M Group. They say that it should be released before the end of 2019. The launch details were revealed in a press conference, held on a private yacht in the UAE.
It is an asset-based cryptocurrency that will be pegged against gold, making it a stablecoin. One of the interesting aspects of Coin M is that investments in it start at just $100. It is designed to be an inclusive environment that allows investors to get involved regardless of their income levels.
In terms of returns, it is said to provide the opportunity for initial investors to get a full 100% return in a year. Early details on the currency suggest that the assets will provide sufficient stability to avoid large price swings.
However, the exact mechanism for determining its price isn’t yet known. Gold is traditionally seen as a safe haven investment in times of economic turmoil. Indeed, Citigroup analysts have predicted that the price of the precious metal could rise to a record-high of $2,000 per ounce in the next couple of years.
Founder and CEO of the Golden M Group Mustafaa Motiwala was quoted saying that the launch of their coin will have a “global impact”. It is worth noting that the UAE has recently been named as the cryptocurrency capital of the world. Sales of over $210 million in this country in the first three months of 2019 pushed it ahead of the US in the charts.
What Global Effect Could This Currency Have?
Coin M is one of a growing number of asset-backed cryptocurrencies that use real-world assets to reduce price volatility. Just as importantly, it is expected to empower investors with modest income levels to make their first moves into the cryptocurrency world.
With Facebook’s Libra set to be asset-backed and Tether (USDT) already proving to be successful, it seems likely that we can expect more stablecoins to be released. These coins should offer a higher degree of security and could encourage risk-averse investors to buy cryptocurrencies for the first time.