Is Monero Halal: Is XMR Coin Halal?
In this article we do a complete shariah screening of Monero to determine if XMR is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in XMR coin, but have a read and see if you feel comfortable about it first.
What is Monero or XMR?
Design-focused upon privacy and fungibility, Monero is a Bytecoin fork providing anonymous value transfers through the use of ring signatures, stealth addresses, confidential transactions, and bulletproofs. Monero opts for anonymity by default rather than enabling the privacy-preserving functions of its peers.
Bytecoin was forked to create BitMonero. The people who initially supported BitMonero only gave it some support and left shortly after, which caused seven community members to create a new cryptocurrency, Monero. This particular group, which included the pseudonymous Fluffypony (Riccardo Spagni), quickly became the Monero Core team. Monero’s initial project launched in April 2014 without establishing a hare album.
Monero regularly changes its proof of work algorithm to prevent ASICs from dominating the mining process.
Further details on Monero website
Who Invests In Monero?
Asymmetry Asset Management
Myriad Capital Management
Pecunio Cryptocurrency Fund
The Hive Index
Is Monero Halal: Is XMR Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
The blockchain is maintained by a network of economic nodes, which are covered in this procedure, by using resources, validating transactions, propagating them, and competing to include them in the blockchain (Mempool). Economic nodes (known in full nodes) receive business transactions from other network participants, check the legitimacy and validity and transmission of the received information using the consensus rules, and all double-spend vectors to prevent conflicts.
The Monero protocol uses a proof of work (PoW) algorithm called RandomX, which helps to avoid the use of ASIC mining equipment. Monero hard forks every 6 months to implement upgrades to the mining algorithm, often modifying its PoW algorithm to prevent ASIC mining equipment from participating in the network.
Legitimacy Screening of Monero
From the seven developers that started Monero in 2014, 5 chose to remain anonymous. Some reports claim that XMR was also invented by Satoshi Nakamoto, the creator of Bitcoin giving it substantial credibility. This gives us the confidence to confirm that Monero 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 Monero project aligned with Islamic values?
Yes, Monero: XMR project does align with Islamic values as its main selling point is that it aims to attain the highest degree of decentralization possible, meaning that a user does not need to trust anyone else on the network. There is nothing against Islamic guidelines with this objective.
Financial Screening of Monero:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Monero 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.
XMR Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments
The Monero network accepts XMR as a native currency. Power storage and peer-to-peer transactions can be conducted through it. Since it’s designed to keep a clear record of transactional activity, it is unsurprisingly widely used across black markets.
Is Staking Monero: XMR Halal?
There is no staking XMR at the time of assessment so this does not apply.
What Does The Muslim Crypto Community Think of XMR?
Islamic Finance Guru (IFG) believes Monero: XMR is a halal cryptocurrency based on its method of Shariah complaince screening.
Sharlife considers Monero: XMR coin as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Monero: XMR coin is a Halal digital asset based on its Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Monero: XMR coin is halal.
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 Monero Halal: Is XMR Coin Halal?
Yes, Monero: XMR coin is Halal as it was designed to facilitate private transactions and to offer anonymity. But isn’t that what BTC is all about? With BTC it’s fairly simple to trace payments back to their source, because blockchains are public. Monero is designed to increase privacy by obscuring the identity of senders and recipients through advanced encryption. There is nothing against Shariah within this project so Muslims may invest, trade and stake XMR.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.