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With over $3 trillion, Islamic finance has become a significant player in the global economy. Muhammad Zubair Mughal is right at the heart of it, and speaking to CoinGeek Backstage, he revealed just how advanced the sector is and how it’s weaving its way into the blockchain and digital asset world.
Mughal is the CEO of the AlHuda Centre of Islamic Banking and Economics, an institution focused on Sharia-compliant finance. The Centre provides advisory services to hundreds of clients from over 50 countries.
Speaking to CoinGeek Backstage, Mughal revealed that Islam has nothing against digital currencies as a whole.
“In Islam, we do not have any prohibition on utilizing of technology. The issue is the speculation, the interest-based investment and some gambling. These are some major elements which we need to consider while we’re talking about Islamic cryptocurrencies,” Mughal noted.
The debate on whether Bitcoin and other digital assets are halal or haram in the Islamic faith has raged for nearly a decade. Some believe Islam is technology-neutral and doesn’t outlaw digital assets—rather, it depends on the particular use case. Others are not nearly as accommodating, including the world’s largest Islamic organization, Nahdlatul Ulama, which declared digital currencies as haram last year.
Mughal revealed that he’s been in advanced talks with some key leaders in the Bitcoin SV space over how BSV can be Sharia-compliant. Muhammad Anjum has led these dialogues, with his startup InvoiceMate seeking to comply with Islamic guidelines as a fair share of its clients are from Muslim nations.
As Islamic banking grows, Mughal believes it would provide financial inclusion, especially for Muslims who stay away from most financial services as they don’t align with their faith. It’s not limited to Muslims, however, and it has a lot to offer to the mainstream financial industry, he added.
“We should treat Islamic finance as a system–a system of banking, insurance and fintech. We should not treat it as a religious product,” Mughal pointed out.
Watch: The BSV Global Blockchain Convention panel, Islamic Finance & Blockchain
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