MOSCOW – A Russian adviser on Islamic economics and finance has confirmed that cryptocurrency could be introduced soon as a new tool of Islamic banking, adding that the issue is currently being discussed by the Muslim community.
“Sharia standards do not cover this issue yet, but in the perspective of two or three years they can be developed,” Madina Kalimullina, an adviser on Islamic economics and finance of the Russia’s Muftis Council, told TASS after a conference in Kazan, Russia today.
“This topic is now very popular in the Russian Islamic community, particularly in the Caucasus, it is constantly discussed at the meetings of Islamic economists,” she added.
According to Kalimullina, several Muslim countries have been adopting various forms of cryptocurrencies.
In Kazan, there is a so-called ‘meat-coin’ for settlements in the livestock business.
Indonesia’s Bitcoin and Malaysia’s Coinbox also offer services linked to cryptocurrencies.
Yet, the reason for debate is the absence of a single regulator for cryptocurrencies, according to Kalimullina.
“Among the main arguments against bitcoin is a high degree of risk (maisir) and uncertainty (gharar), a lack of provision of real assets and state guarantees,” she said.
The expert added that it is not forbidden to conduct bitcoin operations for Muslims if they access all the “risks and the high probability of gharar and maisir.”
The UAE has recently started issuing a new cryptocurrency, secured with gold, she said.
Islamic banking requires banking activities following the religious teachings of Islam. Shari`ah law requires a currency to be tangible or to have evidence of existence.
For a currency to be halal, it must be deflationary in nature meaning that it is resistant to inflation and has a steady market price.