Crypto money market
Foto: Phongphan, Shutterstock

The alternative money market. Economic Islam repositions itself

Things are happening in the money market. Islamic economic law and its ethical convictions motivate new approaches.

(Islamic Times) – Zakat, the symbol of Muslims’ solidarity, has lost none of its relevance. In Europe, the old principle of local distribution is slowly reasserting itself.

Muslims on the alternative money market

In the meantime, there are also online providers who – beyond belonging to specific communities – organise zakat distribution locally.

The presence of Muslims will help to reduce social tensions in our modern societies. Globally, an economic dispute is emerging over the future reserve currency.

The oil-producing countries, such as Saudi Arabia, see their new power, among other things, in no longer exchanging their resources exclusively for the American dollar.

Foto: Archive

Money production also a key question

The fundamental question of the ethics of money production are key questions for Muslim scholars: how do you create justice under the current conditions, between rich and poor, young and old?

How can the fatal effects of inflation be controlled? Islamic economic law and its ethical convictions motivate new approaches.

Among other things, the focus is on one question: Is there such a thing as freedom of choice of money in Islam? For centuries, gold- and silver-backed currencies were an integral part of trade. This monetary economy was replaced relatively late in Islamic history by the common paper currencies.

In recent years, there have been repeated attempts to bring gold-backed debit cards into circulation. These attempts have been hampered by the manipulation of global gold and silver prices.

Foto: Chinnapong, Shutterstock

Muslim start-up in Switzerland

Following the success of the Bitcoin currency, this trend is now catching up with the Muslim world. In Switzerland, a start-up offers the digital cryptocurrency “Islamic Coin.” According to the initiators, among them influential personalities from the United Emirates, the artificial currency is supposed to be compatible with the legal principles of Islam.

In a fatwa, it is pointed out that the limitation of the creation of the digital coins is to prevent inflation and that the blockchain technology used is secure. In the transaction model, third parties, for example banks, are no longer necessary.

The question of the legitimacy of cryptocurrencies – often not suitable for everyday transactions and therefore so far pure objects of speculation – is controversial in the Muslim world. Beyond the legal issues, it is apparent that there is movement in the Muslim money market. The solution to the economic problems, the idea of a fair money economy, is occupying Muslims all over the world.

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