Cryptocurrency technology has been on a tumultuous journey since its creation in 2009. According to a recent New York Times article, bitcoin enthusiasts in the U.S. wrongly predicted the involvement of Wall Street institutions and investors in cryptocurrency, which would have given it legitimacy. Instead, the opposite effect has taken place: big investors have avoided crypto because of its volatility, as shown by bitcoin’s devastating drop in price last year.
Elsewhere in the world, particularly in the Middle East and among major Muslim communities, there is a growing curiosity surrounding cryptocurrency — and a call for regulation that deals with the stigmas against it. There are about 1.8 billion Muslims worldwide, and the global Islamic economy with the inclusion of crypto tools, services and products could equate to approximately US$3 trillion by 2021. If we are able to work through the challenges and implement crypto for a Muslim audience, the addressable market for crypto could increase exponentially.
But since its inception, Muslim leaders and communities have debated on whether or not cryptocurrencies should be deemed halal or haram, permissible or forbidden. Shariah-compliant finance is a fundamental part of Islamic tradition, and it’s the primary reason why Islamic countries have been so dubious of the new currency.