The monetary system is based on debt and usury, which is against Islamic law. In an editorial published on 28 July Bitcoin Magazinethe editor Tea Bitcoiner Muslimwhich hosts the famous Muslim Bitcoiner Podcastshowed how Bitcoin (BTC) enables a monetary system that follows the teachings of the Quran.
bitcoin as anti Riba
According to the data provided by the editor, the monetary system of the world is contrary to the prescriptions of the Holy Koran, because it carries in its deep nature an almost original sin which is the Riba. According to the Koranic texts, the Riba it means administering, or charging an amount of interest on a loan. It can also be compared to the exchange of the same type of commodity in unequal quantities. It is on the principle of Riba that the Islamic banks designed their business model.
According to the interpretation of the Quran, the mechanism of creating money that starts from the act of borrowing from the commercial bank is also a sin, “abomination”. You should know that the loan deed is the main mechanism by which new dollars are created.
“One of the problems with this disease in the process of money creation (…) is that the dollars are essentially created through debt and for this activity of issuing debt to be profitable, there must be some form of Riba involved in the process. , he explains. Another problem with the current monetary system would be inflation, he continues.
However, with Bitcoin, “People will probably keep their coins. This will reduce the temptation to lend them just to earn a small amount of interest. Under a hard money standard where BTC is expected to appreciate year after year, why would anyone lend their bitcoin to a stranger ie. banker , just for the small benefit of earning interest with the major disadvantage of losing BTC if the borrower defaults”he asks.
In addition, he explains that the number of BTC cannot be increased by issuing credits, because a fixed number is limited at 21 million coins. In addition, bitcoin can only be obtained through mining, which is a transparent activity and less complicated than the current mechanisms for creating fiat money, ie banking manipulations, central bank operations, etc. which is contrary to the prescriptions of the Koran.
Moreover, the technology is open to everyone, making it less opaque and prone to corruption, another major sin according to Koranic law.
According to The Muslim Bitcoiner, bitcoin (BTC) is a great example of what the Koran is in terms of business transactions. His protocol complies with the instructions of the Prophet Muhammad in this area.
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and share my pen knowledge related to this ecosystem.