OneGramCoin will be the first digital currency compliant with Islamic law, as well as the first one backed by gold.
The Dubai-based technology firm OneGram hopes to raise more than $500 million with their newly launched OneGramCoin for a new payment system.
Looking at the current prices of gold, if all of the available 12.44 million tokens (digital coins) are sold, they are expected to bring in about $555 million.
In an interview with Reuters on Tuesday, OneGram CEO explained that their vision for OneGramCoin is to create a payments solution around it, one that will save retailers the transaction fee they pay when accepting money through Mastercard or Visa.
Each individual token will be backed by 1 gram of gold that will be kept in a vault inside the Dubai International Airport.
The digital currency was created using blockchain technology, the same used in the creation of Bitcoin and other similar currencies. Blockchain is a database that tracks and maintains lists of assets all over the world.
Mohammed revealed that nearly 50 percent of the offering had been committed to by Tabarak Investment Bank, which will sell 100 million euros to their clients. He added that a similar amount is expected to be bought by seven private individuals.
The tokens will be put up for sale starting May 21 to Sept. 22, and are open to all types of investors, both muslim and non-muslim.
Digital currencies are internet-based monies that do not have a physical shape in the form of banknotes and coins. Their purely virtual existence allows instantaneous transactions and transfer-of-ownership without restrictions imposed by borders and regulations.