Islamic Finance is Optimistic about the potential of cryptocurrency
Islamic Finance is Optimistic about the potential of cryptocurrency

Islamic Finance is Optimistic about the potential of cryptocurrency

By Giorgi Mikhelidze - 19 Oct 2020

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Datuk Mohd Daud Bakar, the Chairman of the Shariah Advisory Council of Bank Negara, said that Islamic Finance was considering cryptocurrency as a new thing and stated that its potential is as normal as many fruits hanging low in the segment. 

Islamic finance reports that the prospects of cryptocurrency are looking positive. On October 6th in Kuala Lumpur, the head of Bank Negara, the Shariah Advisory Council of Malaysia, said that this optimism towards crypto is a result of an increase in digitalization in the economy, and crypto is gradually becoming the new standard of payment.

 He described the potential of cryptocurrency as a lot of fruits hanging on the segment and said that it is the new thing in Islamic finance.

He also said that they are facing a crisis, yet it is also a new normal where many people are getting well acquainted with the digital sector because of the restriction of movement.

According to him, during the 2020 Fintech SCxSC Conference, cryptocurrency is a puzzle or an insight. He further said that it is an idea that concerns the ability of people to make it easy to understand, considering that at the moment, it is something that is new and a lot of people think that it is a matter of perception or a conundrum. 

Besides Russia, the esport industry in Malaysia is also gradually picking up, as the crypto sector continues to garner recognition of the religious communities. 

Unlike cryptos, the Islamic Advisory council is still greatly against the esports and betting industry in Malaysia. This is due to the fact that the practice is against the religious beliefs of the region which is vastly Muslim. 

Despite this, analysts say that the new insight about the Advisory Council backing the potential of cryptocurrency has made it possible for those in the video gaming industry to become optimistic about the position of the best Malaysian esport bet opportunities in the country, because just like cryptos, the Islamic Council greatly criticized the use of digital currencies but are currently very bullish about its potential and this might be the case of esports and the video gaming industry in the country as well.

Datuk Mohd Daud Bakar, the Chairman of the Shariah Advisory Council of Bank Negara was among the speakers in the panel called the Crypto Conundrum In Islamic Finance: Digital Assets and Shariah Compliance.

As the global economy, as well as the Malaysian economy, embarks on the digitization of businesses as a result of the coronavirus lockdown effects, he stated that currency was among the matters that are constantly left out.

He further said that currency is still not digital and the whole ecosystem is needed to move it from one group to another, although it might take days at times.

Making the whole point inefficient. He said that the crypto sector has quickly been developing in the country positively, although intriguing, yet the last argument has not been discussed. He says that they are fighting hard for this to go through which is the idea of making the digital currency more efficient.

Mohd further says that it is not about completely making a new currency, rather, the administration could create its own fiat currency in a digital form and which will be the basic cryptocurrency, a stable coin backed crypto.

Giorgi Mikhelidze

Giorgi is a Georgia software developer with two years of experience trading on the financial markets. He is now working to spread the knowledge about the Blockchain in his country and share all of his findings and research to as many crypto enthusiasts as possible.

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