MBitcoiner on Nostr: The following is a response to a short video on Twitter where a brother talks about ...
The following is a response to a short video on Twitter where a brother talks about the problems with Islamic Banking:
I think the problem with Islamic Banking is spot on, and analogy of the casino is great. Indeed, Muslims need to find an alternative system, but the two solutions offered don't really solve the Riba problem.
1. Islamic FinTech does not solve this, because it's still using money that's completely entrenched in Riba. Even the money itself can only be created through issuing Riba based loans. Getting a new Islamic FinTech platform cannot solve a monetary problem.
2. Crypto (altcoins) does not solve this, as all it does is recreate the Riba problem. They're all centralized and non-neutral, and they create the incentive to change the monetary protocol to benefit the founders and insiders. No altcoin is secure enough and liquid enough to build a global monetary system. Crypto suffers from the same economic, technical, and ethical problems that fiat has, especially the cryptos that are not proof-of-work.
The two actual solutions to the Riba problem are gold and Bitcoin, which falls outside of crypto.
Bringing back the gold standard has been tried many times by Muslims, see Gold Dinar movement and also Gaddafi, among other attempts. They all failed.
Bitcoin is the only viable solution to the Riba problem as it's actually neutral, permissionless, extremely secure, credibly scarce with an unchanging monetary policy, and based on proof-of-work. Bitcoin is the anti-Riba monetary protocol that has a great chance of replacing the global fiat monetary system and solving the Riba problem.
I think the problem with Islamic Banking is spot on, and analogy of the casino is great. Indeed, Muslims need to find an alternative system, but the two solutions offered don't really solve the Riba problem.
1. Islamic FinTech does not solve this, because it's still using money that's completely entrenched in Riba. Even the money itself can only be created through issuing Riba based loans. Getting a new Islamic FinTech platform cannot solve a monetary problem.
2. Crypto (altcoins) does not solve this, as all it does is recreate the Riba problem. They're all centralized and non-neutral, and they create the incentive to change the monetary protocol to benefit the founders and insiders. No altcoin is secure enough and liquid enough to build a global monetary system. Crypto suffers from the same economic, technical, and ethical problems that fiat has, especially the cryptos that are not proof-of-work.
The two actual solutions to the Riba problem are gold and Bitcoin, which falls outside of crypto.
Bringing back the gold standard has been tried many times by Muslims, see Gold Dinar movement and also Gaddafi, among other attempts. They all failed.
Bitcoin is the only viable solution to the Riba problem as it's actually neutral, permissionless, extremely secure, credibly scarce with an unchanging monetary policy, and based on proof-of-work. Bitcoin is the anti-Riba monetary protocol that has a great chance of replacing the global fiat monetary system and solving the Riba problem.