Hada DBank: Islamic Banking Taking the Decentralization RoadFebruary 21, 2018
Practising Muslims have always been uncomfortable with conventional banking systems since it involves fixed profits and interest- two concepts that are not allowed in Islam. In the Muslim majority countries, there are banks that have an Islamic version that works side by side, or separately from the conventional setup.
A Malaysian startup, the team behind Hada DBank realized that there is a huge gap in the banking sector when it comes to serving the specific needs of Muslims. There are numerous banks that offer Islamic compliant services, but those banks are still traditional in everyday running: the money and paper handling is still physical and movement of cash is as slow as conventional banks. The team saw an opportunity of offering banking services that are not only shariah compliant, but also break away from the traditional monetary handling systems.
The result is the Hada DBank. A fully compliant Islamic bank that is decentralized and utilizes the power of blockchain.
Islamic vs Conventional Banking
Major differences that Hada DBank will have over conventional banks are:
No Interest: Interest is strictly forbidden in Islam. The bank will earn from trade of goods or services rendered, not by charging interest.
Commodity: Money, apart from being a medium of exchange, is used as a commodity by conventional banks. Hada DBank will only use money as a medium of exchange or store of value.
Profit and Loss: Conventional banks charge interest even if a client has suffered losses. In Islamic banking, the bank will bear losses upto the percentage of its investment.
Transparency: Clientage is fully informed on how their deposited money will be utilized by the bank. As true investors, Depositors have a say in where to invest money (by majority vote).
Hada DBank Services
As a proper bank, Hada DBank will give all services of a normal bank and then some more:
Free Account (and crypto wallet).
Hada Exchange to convert cryptocurrencies.
Physical and virtual debit cards.
Zero transfer fee between account and wallet.
AI based financial advisor.
No interest on loans and a 10% return on investment (based on different Islamic investment products.
The best feature of Hada DBank is that, although targeted for Muslims, it will be available for every person in the world, regardless of race, location and belief.
The Hada DBank uses its own coin, the HADACoin for transactions. As a true bank, the depositors will be able to use HADACoin for:
Daily activities such as shopping via debit card.
Receive monetary profits from dividends and returns.
Collateral when applying for loans.
Trading in crypto exchanges.
Hada DBank Token Sale
A total of 500,000,000 coins will be created, of which 295,000,000 will be made available for acquisition during TGE stages. The coin is in its initial TGE stage right now which will end on 28 February. 70,000,000 coins will be available in the initial TGE and the rest of the 225,000,000 will be available in the main TGE later on. Conversion rate is 1ETH = 4000HADACoin. The first million coins for early backers will have a discounted value by 50 percent. Coins not acquired after the sale will be stored in an escrow account, to be released in a controlled manner over the months and years so as not to cause shocks to price.
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