IslamCoin: Islamic Finance Structural Reform from Sharia Compliant Banking to Decentralized Halal Money System

Abstract

This paper introduces IslamCoin as a decentralized, gold-backed monetary model that restores Islamic finance to its original asset-based foundations. Unlike modern Islamic banking, which remains dependent on fiat money and debt replication, IslamCoin anchors issuance to physical gold and enforces convertibility, preventing inflationary expansion and monetary speculation. Financing occurs through musharakah and mudarabah as native equity-based instruments rather than interest-linked credit. Governance is limited to verification and attestation, not monetary control, ensuring transparency without centralization. By making money halal at the structural level rather than merely at the contractual level, IslamCoin re-aligns currency with real economic value and risk-sharing ethics. It functions first as a stable store of value and, gradually, as a circulating medium rooted in justice and trust.