Can Bitcoin (BTC) help Muslims follow the Quran better?

The monetary system is based on debt and usury, all chosen which is against Islamic law. In an editorial published July 28 on Bitcoin Magazinethe editorialist The Muslim Bitcoinerwho is the host of the famous Muslim Bitcoiner Podcasta Bitcoin shown how (BTC) enables a monetary system that follows the teachings of the Quran.

bitcoin as an anti Riba

According to the details provided by the editorialist, the world monetary system 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 means usury, or the charging of an amount of interest on a loan. It can also be likened to the exchange of the same type of article in unequal quantities. It is on the principle of Riba that Islamic banks have designed their economic model.

According to the interpretation of the Quran, the mechanism of creating money which is part of the act of commercial bank lending is also a sin, “an abomination”. It should be noted that the deed of loan is the main mechanism by which new dollars are created.

“One of the problems with this abomination of the process of money creation (…) is that dollars are essentially made up of debt and for this activity of issuing debt to be laudable, there must be a Riba some thing part in the process”, he explains. Another problem with the current monetary system would be inflation, he continues.

Or, with Bitcoin, “People are likely to keep their coins. This will reduce the temptation to loan them out 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 want their bitcoin from a stranger i.e. a banker , just for the small benefit of earning interest with the huge downside of potentially losing their BTC if the borrower defaults”he asks.

Furthermore, he explains that the number of BTC cannot be increased by issuing credits, because there is a fixed number capped at 21 million coins. Moreover, bitcoin can only be obtained through mining, which is a transparent activity and less complex than the existing mechanisms in the creation of fiat money, i.e. banking manipulations, central bank operations etc which are contrary to the prescriptions of the Koran.

Moreover, the technology is open to everyone, which makes it less opaque and prone to corruption, another major sin according to Koranic law.

According to Muslim bitcoin, bitcoin (BTC) is a perfect example of what the quran in terms of business transactions. Its protocol complies with the prescriptions of the Prophet Muhammad in this area.

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Avatar of Luc José Adjinacou

Luc Jose Adjinacou

Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.

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