Kinesis, a gold-backed monetary system in the Cayman Islands, has launched a Sharia-compliant version of its product in Indonesia, paving the way for wider adoption of its blockchain solution in the world’s largest Muslim-population country.
The product, PosGO Syariah, is described as the first mobile ecosystem company in Indonesia to comply with Islamic law. Delivered as an application and powered by blockchain technology, PosGO is a digitized physical gold trading platform that also allows users to make real-time, peer-to-peer transfers of gold and fiat currency. The platform also offers a payment gateway and a ‘Golden Mecca’ community savings program for the Hajj, the Islamic pilgrimage.
Importantly, PosGo is being launched in partnership with PT Pos, Indonesia’s government-run postal service and the largest non-banking institution in the country. The reach of PT PoS opens up Kinesis’ physical gold-based digital product to the masses.
In addition to PT PoS, ABX and PT Bullion Exchange are also working with Kinesis in the rollout of the new initiative.
The new product was certified by the federal government, as well as the country’s Sharia board of trustees, Kinesis announced in Jakarta early Thursday. Being fully compliant with Sharia law, this means that the new product is not a debt-based system on which interest is applied and accrued.
Thomas Coughlin, CEO of Kinesis, said PosGO will enable more Indonesians to use gold as their currency:
“People are increasingly moving away from traditional currencies and I am humbled to present Kinesis as a robust and scalable solution for digitized and mobilized gold as a currency.”
Indonesia is lagging behind other countries in digital asset adoption after the Jakarta government announced a blanket ban on crypto payments in 2017. Nevertheless, the authorities have recently taken a more neutral stance on the asset class in the country.
Indonesia went into recession in the second half of 2020 amid the COVID-19 pandemic. The recession ended 22 years of consecutive growth for the emerging economy as tourism plummeted. With so many citizens feeling the pressure of the post-COVID order, Kinesis aims to provide Indonesians with a fairer way to store and exchange wealth as compared to the traditional fiat system.