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The following is a response to a short video on Twitter where a brother talks about the problems with Islamic Banking:

I think the problem with Islamic Banking is spot on, and analogy of the casino is great. Indeed, Muslims need to find an alternative system, but the two solutions offered don't really solve the Riba problem.

1. Islamic FinTech does not solve this, because it's still using money that's completely entrenched in Riba. Even the money itself can only be created through issuing Riba based loans. Getting a new Islamic FinTech platform cannot solve a monetary problem.

2. Crypto (altcoins) does not solve this, as all it does is recreate the Riba problem. They're all centralized and non-neutral, and they create the incentive to change the monetary protocol to benefit the founders and insiders. No altcoin is secure enough and liquid enough to build a global monetary system. Crypto suffers from the same economic, technical, and ethical problems that fiat has, especially the cryptos that are not proof-of-work.

The two actual solutions to the Riba problem are gold and Bitcoin, which falls outside of crypto.

Bringing back the gold standard has been tried many times by Muslims, see Gold Dinar movement and also Gaddafi, among other attempts. They all failed.

Bitcoin is the only viable solution to the Riba problem as it's actually neutral, permissionless, extremely secure, credibly scarce with an unchanging monetary policy, and based on proof-of-work. Bitcoin is the anti-Riba monetary protocol that has a great chance of replacing the global fiat monetary system and solving the Riba problem.

BTCrevolutionary 1y ago

Why are Muslims hesitant to embrace Bitcoin? Seems like it would be obvious that Bitcoin is the answer.

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Discussion

alp 1y ago

Because of some economically illiterate scholars that spoke against Bitcoin without understanding it.

Misty 1y ago

There's a difference of opinions among Muslim scholars right now surrounding Bitcoin.

They haven't taken a deeper look at it to see the benefits:

* Neutral

* Permissionless

* Borderless

* More can't be printed

Some of the scholars (at least what I understand) only looked at the changing price (goes up or down like a stock) and then immediately labeled it as a stock, and since most stocks are not allowed, it got lumped in there with all of that.

To be safe, they said "not allowed."

And a lot of people accept whatever scholars say without looking at something deeply because they believe they should, they believe that scholars are always right, or they grew up with both of those viewpoints. Challenging it seems illogical to them.

Until recently, I wasn't willing to take a deeper a look at it.

I haven't had time to learn or investigate deeply.