Blockchain technologies are becoming integral in discussions about transitioning financial systems to comply with Sharia law, which includes strict guidelines on financial operations.
Blockchain and Sharia Law
Excuses that complying with Sharia norms is challenging due to legacy financial systems are becoming obsolete with the advent of blockchain technologies. Mohemed AlKaff AlHashmi states that blockchain is 'the most compatible technology with Sharia's ethics and values.'
Halal Crypto Market Growth
The Islamic finance industry is already valued at $4 trillion and is expected to double in the coming years. In the Middle East and North Africa region, cryptocurrency transaction volumes accounted for 7.5% of the global figure over the past year.
Demand for Islamic Financial Products
The demand for Sharia-compliant financial products continues to grow. Founded in 2020, Marhaba Network has already attracted 40,000 users through its noncustodial Sahal Wallet, and Bybit has launched the 'Crypto Islamic account.'
As cryptocurrency gains global traction, the development of solutions for Sharia compliance, including blockchain as a primary tool for ensuring transparency and reliability in financial transactions, continues to advance.
