Tag: Islamic

How digital assets can comply with Islamic financial law

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Islamic banking and finance is a system based on the principles of Shariah, or Islamic law, which, among many other things, prohibits the charging or paying of interest on loans and emphasizes ethical and equitable financial transactions.  One of the more notable traits of Islamic banking is its prohibition on charging or paying interest on loans, which is the basis of conventional banking. Instead, Islamic finance is based on profit and loss-sharing agreements between the lender and the borrower. The lender shares the investment risk with the borrower, and both…

IMF Studies How CBDCs Imply Islamic Banking System

The IMF explained that CBDCs design is complicated by Islamic law prohibiting usury and speculation. The International Monetary Fund (IMF) has examined the central bank digital currencies (CBDCs) design and found some risks in the context of Islamic banking. Following the IMF study, results showed that the liquidity of CBDCs and foreign exchange would work differently from Islamic law, against expectations. Notably, Iran and Sudan are the only two countries that fully operate Islamic banking systems. However, the financial system is present in 34 countries and systematically plays a crucial…

IMF examines CBDC design in context of Islamic banking, finds some risks magnified

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A central bank digital currency (CBDC) can impact monetary policy by increasing money velocity, disintermediation, volatility of bank reserves, currency substitution and altered capital flows, even when it is not designed to do so, according to a study published by the International Monetary Fund. The unintended impact of a CBDC may be felt particularly acute in the Islamic banking system. The Islamic financial system accounts for less than 2% of global finance, but it is present in 34 countries and systemically important in 15 jurisdictions. Only two countries, Iran and…

Islamic Fintech Startup Wahed Opens Physical Office in UK

Wahed has a plan to help its customers grow their funds in the most Sharia-compliant way. American financial technology and service provider, Wahed has extended its global reach with a newly opened office in the United Kingdom (UK). As reported by CNBC, the new office is like a storefront that looks like that of Apple Inc (NASDAQ: AAPL), and it will house staff members that will provide account opening services and investment counseling for prospective customers. Wahed is touted as an Islamic finance banking firm that adheres to the tenets…

Shariah-Compliant Islamic Coin Raises $200m, Beating All Records in 2022

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Shariah-compliant Islamic Coin has secured $200M during its private sale from international private buyers. The crypto, targeting the world’s 2 billion Muslim population and ethics-first crypto adopters have broken all records, becoming the top private sale raise in 2022 and the top 10 raise in history. The Shariah-compliant digital currency has gained a Fatwa, issued by the world’s leading experts in Sharia Law. The edict was led by Sheikh Dr. Nizam Mohammed Saleh Yaquby, recognized as ‘The Gatekeeper’ of a $2 trillion market for Islamic financial products. The award-winning team…

Kuwait-Based Islamic Bank Enters the Metaverse – Metaverse Bitcoin News

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Warba Bank, a Kuwait-based Islamic bank, recently became the latest corporation from the Middle East and North Africa (MENA) to enter the metaverse. The bank now occupies two sites in the metaverse, one Decentraland and another one on Sandbox. Pioneering Digital Transformation In what has been described as a first for an Islamic bank, the Kuwait-based Warba Bank recently said it now occupies two sites in the metaverse, one on Decentraland and another on Sandbox. The bank’s presence in the metaverse is expected to bolster its communication with the young…

Top GCC Banker Hussein Al Meeza Joins Islamic Coin Executive Board

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Top financier and banker Hussein Al Meeza has joined Islamic Coin – the Shariah-compliant cryptocurrency launched in the UAE. Having been named Best Islamic Banking Personality in 2006, Mr. Al Meeza is an acclaimed award-winning expert with over 40 years of experience spanning the Islamic banking, finance and insurance sectors, and has been one of the key personalities involved in establishing Dubai Islamic Bank. Among his many accolades and executive roles are some of the Region’s top institutions. Mr. Al Meeza is the founder of Al Salam Banks in Sudan,…

Islamic Scholar Says Digital Currency is Not a ‘Fictitious Currency’ – Emerging Markets Bitcoin News

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An Islamic scholar, Irshad Ahmad Ijaz, has asserted that digital currency is not fake currency and that it should be legitimized once certain conditions are met. Ijaz’s viewpoint is echoed by other scholars that attended a seminar examining the status of digital currencies from the perspective of Islamic law. Use of Crypto in the Digital Age An Islamic scholar or Mufti, Irshad Ahmad Ijaz, recently argued digital currencies are not so-called fictitious currency, a report has said. He, however, suggested that such currency can only be justified once certain conditions…

Indonesian regulator takes cue from Islamic NGOs, bars crypto sales for institutions

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Indonesia’s financial watchdog the Otoritas Jasa Keuangan (OJK) warned financial institutions in the country against offering or facilitating crypto-asset sales. On Tuesday, the official Instagram account for OJK posted a warning against the growing number of crypto Ponzi schemes and risks of crypto investments owing to the market’s volatility. The official post also quoted the chairman Wimboh Santoso who said financial institutions are strictly prohibited from offering crypto sale services in any form. The official post read: “OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto…

World’s Largest Islamic Country, Indonesia Forbids Crypto Trading

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It doesn’t come as a surprise to many as Islamic societies are known to label cryptocurrency trading as a form of “Haram”. Many Islamic organisations in the past have condemned the trading of digital assets such as cryptocurrency and even non-fungible tokens. Recently, the Tarjih and Tardid Council of Muhammadiyah also issued a similar memorandum stating that “Tarjih’s fatwa stipulates that cryptocurrencies are illegal both as an investment tool and as a medium of exchange,”. A fatwa implies that the currency is tagged as unlawful for the community. The particular…