Cryptocurrency is essentially a digital means of currency exchange and digital payments platform that uses blockchain technology. The technologicaland digital revolution over the last few years has meant that innovative payment systems have been created and utilized, and cryptocurrency is one of the major breakthrough payment systems for business and personal use.
A comprehensive Islamic interpretation, one that sparked a massive rise in Muslim investment in Bitcoin and Ethereum in 2018, was provided by Shariaadvisor Mufti Muhammad Abu-Bakar (former advisor to Blossom Finance) who argued that Bitcoin is permissible under Shariah law. He considered arguments that crypto itself was speculative, but his view was that all currencies have a speculative element, and this did not automatically deem crypto as haram (Bakar, 2017).
Another reason Muslim scholars argue that crypto is halal is that the conceptof blockchain and cryptocurrency is inherently anti-interest. Islamic laws are also anti-interest so the blockchain technology, pricing, and buying andselling of cryptocurrency is deemed halal by many Islamic scholars.
Blockchains refer to the blocks of technology used to record digital cryptocurrency transactions. Blockchains act as a system of record and the reason this form of technology is so important is that it is virtually impossible to hack, change or cheat the blockchain platform or marketplace. With the use of blockchain technology, centralized financial institutions and establishments are not needed as no central control is required.
According to many Islamic scholars, cryptocurrency is deemed permissible and halal under Islamic Sharia law, and this has unlocked the crypto investment market to a global Muslim audience with increasing numbers of Muslims wanting to buy crypto and use it as a form of currency.
From the perspective of Islamic contract rules, there must be an element of consideration - Mal. Mal refers to possession and effective storage, and cryptocurrencies meet the criteria required as they can be possessed and stored and have commercial value (Mutaqawwam). Crypto is a real and viable digital asset, it’s worth and value lies in what is paid for it, and it is capable of being owned and traded commercially so the Shariah requirements are satisfied.
The basic rules to govern Islamic finance are:
• The absence of interest-based transactions (Riba)
• The avoidance of economic activities involving speculation (gharar), and gambling (maiser)
• The discouragement of the production of goods and services contradictsthe values of Islam (pornography)
Mission Statement
The BiTakaful Ecosystem serves as a payment environment and focuses on products and services in Islamic countries. It facilitates seamless and transparent use of digital currency within (Sharia-compliant) Blockchain technology.
Under Blockchain, all financial tasks are performed on Islamic principles. All prohibited activities such as gambling, interest overpayment (Rabia) is banned within the BiTakaful Ecosystem.
Our Strategy
• Aims to work as Crypto payment Channel Partner with existing market.
• Develop New Takaful Products on Blockchain.
BiTakaful (Bita)
The word Takaful originated from the Arabic word Kafala which means a joint guarantee.
The concept of Takaful is based on solidarity, shared responsibility, and brotherhood among participants. Participants all agree to cooperate and be mutually responsible for each other unwanted uncertainties and financial damages.
The global Takaful Islamic insurance market is projected to reach $97.17 billion by 2030.
The global Takaful market reached US $27.6 Billion in 2021, around the globe more than 500 Takaful companies are working in more than 65 countries. There are more than 40 Re-takaful Companies in this world as well. Takaful industry is growing very fast as compared to conventional insurance industry, and there are lot of untapped markets to avail this opportunity. UAE, Saudi Arabia, Oman, Malaysia, Pakistan has a high penetration of Takaful insurance.
