Yes, cryptocurrency is blending with Islam: what an adventure! In the first place, UAE-based crypto startup, Adab Solutions, is launching the First Islamic Crypto Exchange (FICE). This is excitedly unprecedented, as we have not seen the communion of cryptocurrency and Islam in this regard. Furthermore, this exchange would make its mark as the first exchange uniquely structured to comply with Sharia law. Doesn’t this sound interesting? Of course, it is!
Independent international Sharia experts will constitute an indigenous Sharia Advisory Board (SAB) that will manage the exchange. Similarly, this board of Sharia experts will ensure that the operations of the exchange consistently align with the dictations of Islam.
Islam and Cryptocurrency Have Aligned for Long
Uniquely, while many of us may not easily see the synergy between Islam and cryptocurrency, a good chunk of cryptocurrency aligns with Sharia laws. How is this the case? For example, let us look at the fractional reserve lending system which we see in many Islamic nations’ monetary structures. This is discouraged in Islam, more generally termed as – usury – which is Jewish in origin.
On the other hand, for cryptocurrency – most especially for Bitcoin (BTC) – it operates under the principle of finite supply and scarcity. This way, cryptocurrency looks like the trading of Salt and Gold. Sharia law approves Salt and Gold trading. Therefore, can you see the already existing relationship between cryptocurrency and Islam?
Basically, since the cryptocurrency doesn’t operate with usury (which Islam frowns at), Muslims have the go-ahead to trade in Bitcoin. Notably, back in April, a renowned Islamic scholar Mufti Muhammad Abu Bakar in Jakarta, Indonesia, declared that Bitcoin doesn’t violate the teachings of the Quran.
According to Mufti Muhammad Abu Bakar, “In Germany, Bitcoin is recognized as a legal currency and therefore qualifies as Islamic money in Germany. In countries such as the US, Bitcoin lacks official legal monetary status but many merchants accept it. Therefore, it qualifies as Islamic customary money.”
Sharia-compliant Crypto Trading Will Be a Massive Boost
In view of this, this development would immensely boost the cryptocurrency world. Muslims appear naturally skeptical about trading in cryptocurrency due to its western origin. Also, they feel this way because it is not very clear if cryptocurrency trading is compliant with Sharia. By the same token, now that it is clear that cryptocurrency trading blends harmoniously with Sharia, we expect more Muslim involvement. Specifically, there are about 1.8 billion Muslims on the planet. Therefore, you can anticipate the massive swell in the cryptocurrency world if Muslims see such trading as Halal (allowed).
According to the founder and CEO of ADAB Solutions, Timur Turzhan, “By investing in FICE, you will not only support the needed and well-timed project for the Islamic Ummah of the whole world but also make a valuable acquisition that can bring a decent profit.”
Don’t you think Bitcoin will enjoy another new high once it is formally approved for Muslims to trade?
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