The news about the Bitcoin’s compliance with the Islamic “Sharia Law” has always been doing the rounds in the latest cryptocurrency updates. That’s because in the Islamic faith, it’s believed that economic activity should be based on real, physical assets rather than any speculations.
Observant Muslims also do not invest in banking products that offer returns via interest payments. Stock markets and speculative assets are “frowned” upon in the Islamic traditions.
Now, Blossom Finance which is a microfinance firm based in Indonesia, has published a detailed 22-page paper this week which indicates that “BTC qualifies as Islamic money, except where it is banned by a local government.”
Matthew J. Martin, the founder, and head of startup BlossomFinance, says that cryptocurrencies are compliant with Muslim Sharia laws. A 22-page study, titled “Is Bitcoin Halal or Haram: A Shariah Analysis,” was released to prove this claim.
Blossom’s Shariah advisor, says that BTC does qualify as Islamic money, with Martin informing that while people believe the Shariah law is a single set of rules, the religion allows for “differing interpretations and views on various matters.”
Muslims, who account for close to one-fourth of the world’s population, are left with a lot of confusion even as the interest in cryptocurrencies keeps growing by leaps and bounds. If this is resolved, the cryptocurrency market could pick up well, owing to the population share they hold. Not to forget that Muslim countries contribute about 1% of global GDP.
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