Unpacking the Skepticism
In the world of finance, especially within Islamic finance, there’s a growing buzz around cryptocurrency. However, skepticism still rears its head, often stemming from uncertainty rather than outright rejection. Suhaida Mahpot, CEO of Amanie Advisors, sheds light on this nuanced perspective while emphasizing that this isn’t a rejection of crypto, but a need for deeper understanding.
The Evolution of Acceptance
To draw parallels, Mahpot likens the current stance towards cryptocurrency to the journey of Amanah Saham Bumiputera (ASB) in Malaysia. When ASB was launched in 1990, it faced criticism and uncertainty. It eventually evolved in perception and in 2012, was deemed ‘harus’—neither explicitly encouraged nor prohibited.
Lessons from ASB
Initially, opinions on ASB were divided. The Selangor Fatwa Committee had initially prohibited it due to the presence of riba, or usury. However, as understanding grew, the same committee ultimately deemed it permissible. This history shows that change is possible with education and advocacy.
The Need for Education
Mahpot emphasizes the importance of educating key stakeholders about the merits of cryptocurrency. She believes that financial institutions and scholars require more comprehensive information to break down their preconceived notions. As she puts it:
“We need to educate institutions more about how digital currencies can be accepted, and how the transparency from using cryptocurrency would benefit the wider society.”
A Global Shift?
The global landscape is also evolving, with countries like the United Arab Emirates and Saudi Arabia exploring the creation of their own cryptocurrencies. Additionally, initiatives like the First Islamic Crypto Exchange showcase the desire for innovation within the framework of Shariah compliance.
Future Prospects
The future of cryptocurrency acceptance in Islamic finance seems optimistic, provided there is an ongoing commitment to understanding and adapting. The transparency offered by blockchain technology could prove beneficial to society at large.
Conclusion: A Journey Ahead
As history shows with ASB, the tide of acceptance can change with time and education. For cryptocurrency to navigate the waters of Islamic finance successfully, it must embrace a similar path of understanding, collaboration, and transparent dialogue.
