Is Alchemy Pay Halal: Is ACH Halal?

What is Alchemy Pay: ACH coin?

Alchemy Pay is a payment platform to connect cryptocurrencies and fiat cash (money) economies. Alchemy Pay not only supports payments through cryptocurrencies, but it’s also made user-friendly, which allows for semi-stable settlement with its connection layer blockchains and layer 2 networks.

Alchemy Pay was founded as a payment protocol built on the infrastructure of open-source software for handling cryptocurrency-to-fiat conversions. Through its platform, businesses and individuals can collaborate with hassle-free and flexible payments for the majority of fiat and cryptocurrency.

The ACH token protocol, developed by Alchemy GPS, was released to the general public on September 4, 2019. Pre-mining of its maximum of 10 billion tokens, 51% of the ACH token were allocated for participants looking to leverage the protocol’s various products and services.

The merchant node network is the underlying infrastructure that powers the seamless operations that keep Alchemy Pay up and running. Nodes are coassembles that partner with gateways, financial institutions, decentralized finance protocols, centralized crypto exchanges and merchant networks. The node network currently has 150 nodes, comprising partners, crypto gateways, smart contracts, centralized cryptocurrency exchanges and merchant accounts.

Further details can be found on Alchemy Pay website.

Alchemy Pay’s Technology

The entire Alchemy Pay network is based entirely on the network’s merchant nodes. The main node of the entire system is not only responsible for the overall operations and maintenance of the ecosystem’s payment system, it also means that all monetary exchanges in the ecosystem can operate properly. All payments on the network are routed through nodes, which are typically merchants or payment processors.

A multitude of technologies are provided in the protocol to allow for fast transaction commerce for merchants, purchasers, and developers. The adaptation layer, pushpay, and pullpay protocol, and atomic exchange are featured at the heart of the protocol’s architecture and are described below.

Legitimacy Screening of ACH

Legitimacy screening ensures that the digital asset is a genuine project and not a scam. ACH has a legitimate product (as explained above), built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that ACH has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.

Is Alchemy Pay project aligned with Islamic values?

Yes, ACH does align with Islamic values so it has a big tick as far as the project screening is concerned. The project allows users to make crypto payments without intermediaries. It’s a bit like Visa or Mastercard on the blockchain. Before you bite my head of screaming haram! Please check out the S&P Shariah Index to confirm that Visa and Mastercard are in fact Halal as defined by the most prominent Islamic Finance Scholars in the world.

Think of Alchemy Pay as a digital payment system that ease enterprises and consumers can use for daily transactions. Everything in this project is neutral and Sharia compliant.

Financial Screening of ACH:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. ACH is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.

ACH Token Screening for Shariah Compliance

Token screening is an assessment of the mechanics of the token itself, to see if it is compliant with Islamic rulings.

The ACH token is the utility and rewards token of the Alchemy Pay ecosystem that supports the protocol’s crypto-fiat payments gateway. The ERC-20 token is rewarded in the form of rewards, pledged by enterprise partners and paid as fees by the platform users. This token should be considered halal.

Is Staking ACH: Alchemy Pay Halal?       

Early and active use of the protocol is rewarded for regular payments of incentives to promote the adoption of the ecosystem’s goods and services. Enterprise participants, like e-commerce platforms, financial institutions and various other payment companies, are rewarded for the quality and quantity of their gross revenue as well as their network size.

Participants in an ecosystem or those staking cryptocurrency may earn rewards, such as rebates on the fees they pay for services or use. Furthermore, interested parties may also earn rewards from the sale of loaned resources on the platform.

At the time of assesment staking ACH was not available so this requires an update before we can say for sure if staking Alchemy is halal or not. Please sign in and share your views on this to help other Muslims out.         

What Does The Muslim Crypto Community Think of Alchemy Pay?           

Sharlife considers ACH Alchemy Pay to be a Halal cryptocurrency based on the five areas assessed for Shariah complaince screening.

If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.          

Is Alchemy Pay Halal: Is ACH Halal?         

Alchemy Pay is a decentralized payment system that bridges cryptocurrencies and fiat currencies and is already offered across e-commerce platforms that consumers can use. The judgment on this project is similar to Verge and we classify Alchemy as Halal and therefore, Shariah-compliant.

The only caveat is the staking aspect which requires a revisit. If you have anything to add about this coin in particular views about staking please sign up for free and help fellow Muslims.  

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.