Cryptocurrencies – A double-edged sword for Islamic finance

Published 27 Oct,2021 via bizbahrain - The General Council for Islamic Banks and Financial Institutions (CIBAFI) and the Islamic Corporation for the Development of the Private Sector (ICD) joined forces for the second time this year to fuel a discussion on “Cryptocurrencies – A Double-edged Sword: Challenges and Opportunities for Islamic Finance”.

Cryptocurrencies have been emerging as a new digital means for payment facilitating efficient, convenient, and secure transactions. They constitute one of the most innovative and disruptive applications of fintech in the Islamic financial services industry, generating a series of debates and regulatory unclarity. For this reason, the 2nd ICD – CIBAFI webinar gathered industry experts to discuss the different views on cryptocurrencies. It highlighted how cryptocurrencies can be used to achieve financial inclusion and development, supporting the growth of the Islamic finance industry.

In his welcoming remarks, Mr. Ayman Sejiny, Chief Executive Officer of ICD highlighted the opportunities that blockchain driven applications can bring to the development agenda, including the promotion of financial inclusion and the growth of the Islamic finance industry in particular. Mr. Sejiny said that shariah-compliant adaptation of cryptocurrencies will be, remarkably, a major milestone in the Islamic Finance industry. And the recent adaptation of blockchain various applications show how the acceptance level for cryptocurrencies and other applications are increasing amongst Islamic banks”.