Bitcoin is challenging conventional financial systems and offers Muslims an alternative to interest-based money that aligns with Islamic principles, experts have told the Bitcoin Mena conference held at Adnec in Abu Dhabi.
During a panel discussion on Monday, economist, best-selling author and Bitcoin expert Saifedean Ammous said: “If you care about your religion, you should consider moving away from dollars and government money, and getting into Bitcoin.”
The two experts agreed that cryptocurrency could be a revolutionary step forward for Islamic finance, moving away from traditional banking systems that rely on Riba.
Mr Ammous pointed out that Islamic finance has long forbidden Riba, the practice of earning money through interest and which is deeply embedded in modern financial systems. “Money is created through interest-based loans, which is prohibited in Islam," he said. “Even if you're not directly involved in lending, using government-issued money means participating in a system based on Riba."
However, Mr Ammous said Muslims now have a viable alternative to Bitcoin that does not rely on interest for its creation.
He added that Bitcoin does not need to be created through debt and said the cryptocurrency exists independently of Riba, unlike fiat currencies, such as gold and silver.
Harris Irfan, chief executive of Cordoba Capital Markets and adviser at Onramp Mena, agreed, acknowledging that many Islamic scholars have criticised Bitcoin for its volatility and lack of government backing.
“Many scholars claim Bitcoin is haram [forbidden] because it lacks intrinsic value and isn't supported by a government,” he said.
He noted that after 60 years of modern Islamic finance, the industry has yet to move beyond fiat financing. “All we're doing in this industry is reverse-engineering conventional debt based on fiat money and fractional reserve banking,” Mr Irfan said.
He added that every time an Islamic bank enters a financing contract with a customer, it creates new money, much as a conventional bank does.
Mr Irfan noted that people have yet to move beyond conventional wisdom. “We hand down from generation to generation that this is the way to do economics and banking,” he said.
Both experts addressed the hesitation among some religious authorities to accept new financial technology.
Mr Ammous criticised this cautious approach and said many scholars are quick to dismiss Bitcoin as forbidden without fully understanding its value. “Unfortunately, religious authorities have historically taken the easy way out by thinking: if it's new, then let's just say 'no' and label it as forbidden,” he said.
Mr Irfan said a new generation of younger scholars is recognising Bitcoin's value as a more Islamic form of money that could replace the gold dinar that once fuelled the golden age of Islamic civilisation.
For him, Bitcoin has already proven its worth in practical terms. He cites his experience using cryptocurrency to bypass obstacles in traditional banking systems. “Bitcoin is freedom money,” he said, which allows for smoother transactions in regions where conventional financial institutions impose restrictions.
In 2014, Bitcoin was trading at about $500 per coin. A decade later, its price had soared to more than $100,000, marking a significant milestone in its evolution. The rise highlights Bitcoin's growing acceptance and its potential to reshape global financial systems.
What began as a niche digital asset has now become a mainstream financial instrument with far-reaching implications.
Mr Ammous said some religious scholars are doing a disservice to Muslims by forbidding Bitcoin, noting many Muslims could have greatly benefited from it a decade ago.
Mr Ammous and Mr Irfan believe Bitcoin offers a promising future for Islamic finance – one that is decentralised, transparent and free from interest-based practices.
KILLING OF QASSEM SULEIMANI
SCHEDULE
Thursday, December 6
08.00-15.00 Technical scrutineering
15.00-17.00 Extra free practice
Friday, December 7
09.10-09.30 F4 free practice
09.40-10.00 F4 time trials
10.15-11.15 F1 free practice
14.00 F4 race 1
15.30 BRM F1 qualifying
Saturday, December 8
09.10-09.30 F4 free practice
09.40-10.00 F4 time trials
10.15-11.15 F1 free practice
14.00 F4 race 2
15.30 Grand Prix of Abu Dhabi
Results
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The five pillars of Islam
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
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LOVE%20AGAIN
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Race%20card
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And%20Just%20Like%20That...
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Killing of Qassem Suleimani
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
COMPANY%20PROFILE%20
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Naga
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Royal Birkdale Golf Course
Location: Southport, Merseyside, England
Established: 1889
Type: Private
Total holes: 18
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Killing of Qassem Suleimani
Kandahar%20
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Dubai Bling season three
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Rating: 1/5
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FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
