Muhammad Mughal on CoinGeek Backstage: Bringing Islamic banking to blockchain
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At 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 how advanced the sector is and how it weaves into the world of blockchain and digital assets.
Mughal is the CEO of the AlHuda Center of Islamic Banking and Economics, an institution that focuses on Sharia-compliant finance. The center offers advisory services to hundreds of customers from over 50 countries.
Speaking to CoinGeek Backstage, Mughal revealed that Islam has nothing against digital currencies as a whole.
“In Islam, we have no prohibition against using technology. The question is the speculation, the interest-based investment and some gambling. These are some important elements that we need to consider while talking about Islamic cryptocurrencies,” Mughal noted.
The debate over whether Bitcoin and other digital assets are halal or haram in the Islamic faith has raged for almost a decade. Some believe Islam is technology neutral and does not prohibit digital assets – rather it depends on the particular use case. Others are not nearly as forthcoming, including the world’s largest Islamic organization, the Nahdlatul Ulama, which declared digital currencies haram last year.
Mughal revealed that he has been in advanced talks with some key leaders in the Bitcoin SV space about how BSV can be Sharia compliant. Muhammad Anjum has led these dialogues, with his startup InvoiceMate trying to adhere to Islamic guidelines as a good portion of its customers are from Muslim nations.
As Islamic banking grows, Mughal believes it will bring financial inclusion, especially for Muslims who stay away from most financial services because they don’t align with their faith. However, it is not limited to Muslims and has a lot to offer 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.
See: BSV Global Blockchain Convention panel, Islamic Finance & Blockchain
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