Moscow, 03 Nov 2017 – Bitcoin and other cryptocurrencies could prove ‘Halal’ in Islam and could be used for ‘Islamic Banking’, said Madina Kalimullina, adviser on Islamic economics and finance to the Russia’s ‘Mufti Council’. Speaking to a Russian news agency, Kalimullina clarified that though a formal decision was yet to be made in this matter, discussions on it have already begun.
This topic is now hotly discussed in Russia, particularly among the Islamic finance experts from the Caucasus region. Kalimullina also mentioned of a similar kind of currency called ‘Meet Coin’ being used in the city of Kazan, the capital of Russia’s Muslim-majority region of Tatarstan, for settlements in the livestock business. She also claimed that Bitcoin and cyrptocurrencies may be permitted in Islam in the days to come.
Madina Kalimullina also drew attention to the start in use of bitcoin in major Islamic countries from the Middle East. BitOasis, the first wallet in Middle East has opened in UAE and is also available in Saudi Arabia, Kuwait, Qatar, Bahrain and Oman. Indonesia has Bitcoin and in Malaysia Coinbox is offering services linked to cryptocurrencies, informed Madina Kalimullina. Considering the usage of cryptocurrencies in these Islamic nations and the response that they are getting, Muslims across the world, in near future, may start the use of cryptocurrencies, said Kalimullina.
Cryptocurrencies may find a place in ‘Islamic Banking’ which operates per the teachings of Islam. But cryptocurrencies still involve high degree of risk and uncertainty. Moreover, they lack provision of real assets and state guarantees backing them. This particular point is believed to be against the teachings of Islam. Kalimullina clarified that Muslims would start using cryptocurrencies with resolution to these discrepancies. Kalimullina informed that UAE had recently started issuing a new cryptocurrency, secured with gold.
Indonesian economist, Matthew J. Martin says that considering Bitcoin as a payment network, it is ‘Halal’ (meaning permitted by Islam). Islam forbids debt-based currencies. But all the currencies currently being used by all the world economies are debt-based and hence do not prove to be ‘halal’ as per the tenets of Islam. But Martin claimed Bitcoin to be a different currency all-together.