In the token economy, digital democracy is driven by the sovereign individual — you and me! However, there is still a lot of cynicism around crypto. Even in a UK market where financial literacy is high, 74% say they need help understanding cryptocurrency. And even if they know, 46-52% say they don’t trust the technology. Only 3% of the global population participates in the crypto market and about 1.7 billion people remain unbanked or without mobile money facilities.
Among the 1.7 billion unbanked also includes faith-based communities who lack faith in the interest-based crypto and decentralized finance (DeFi) market. It’s safe to say that complexity, cynicism, and risk create a massive barrier to market participation. But can halal crypto change this and restore faith in cryptocurrency and DeFi?
Faith And Finance
Money and faith seem to be two separate and unrelated subjects. However, most global religions have their own rules for managing finances. There are often similar concepts but different ways of carrying out the practice, especially in Abrahamic religions.
Judaism is often associated with finance, as historically, Jews have been recognized as leaders and merchants.
In a book on Catholic finance, Dr. Antoine Cuny de la Verryère laid out seven principles of finance according to that faith. They include the “prohibition of short-termism, prohibition of non-virtuous investment, obligation to prioritize virtuous savings, prohibition of unjust profits, obligation to share profits, an obligation of transparency, and obligation of financial exemplary.”
For those who follow Islam, there is a massive emphasis on Islamic finance, which is a financial system that operates in accordance with Islamic principles, known as Shariah. This includes the avoidance of paying interest (riba), engaging in speculation (gharar), and investing in businesses that are considered haram (forbidden).
Islamic finance is essential to the Muslim community which encompasses more than 1.7 billion people around the world. However, none of the current DeFi protocols create a halal or ethical ecosystem that meets their needs.
Why The Lack of Faith in Cryptocurrency
Generally, the level of faith that people have in cryptocurrency varies depending on factors such as their awareness of cryptocurrency, their level of understanding of its technology and its potential, and their personal experiences with it.
While some people are enthusiastic about the potential of cryptocurrency and believe that it can transform the financial industry and even society as a whole, others are skeptical and view it as a speculative investment or even a scam.
For Muslims and other faith-based communities, the lack of faith in cryptocurrency may stem from the fact that many crypto projects are interest-based. Furthermore, there is a lack of guidance on which projects to support or avoid in terms of their alignment with Islamic finance principles.
How to Increase Faith in Cryptocurrency
There are several ways that faith in cryptocurrency can be increased:
- Education and Awareness: One of the main barriers to the adoption of cryptocurrency is a lack of understanding of its technology and potential benefits. Increasing education and awareness through public campaigns, social media, and other channels can help people understand the value of cryptocurrency and how it works.
- Security Measures: Cryptocurrency security is a significant concern, and high-profile security breaches can erode trust in the entire system. Implementing stronger security measures, such as two-factor authentication and encryption, can help protect users’ assets and increase faith in crypto.
- Regulations: Implementing a framework for the safe use and trading of cryptocurrency can increase trust in the system. Clear regulations can help prevent fraudulent activities and provide legal recourse for investors in case of any wrongdoing.
- Mainstream Adoption: Cryptocurrency acceptance by mainstream businesses can help increase its legitimacy and boost public confidence in crypto. More businesses accepting cryptocurrency as a payment method can help create more use cases for it and demonstrate its value.
- Innovation: Advancements in technology and innovation can help address the current limitations of cryptocurrency and make it more accessible and user-friendly. Improvements in transaction speed and fees, as well as the development of more intuitive user interfaces, can help make cryptocurrency more appealing to a wider audience.
Increasing faith in cryptocurrency will require a concerted effort from stakeholders across the industry, including developers, businesses, and governments. By working together to address concerns and improve the overall user experience, cryptocurrency can become more widely accepted and trusted.
How MRHB DeFi Is Restoring Faith in Cryptocurrency
MRHB (pronounced ‘Marhaba’) is the world’s first halal DeFi ecosystem built to include Islamic finance principles within its range of decentralized financial products. As such, MRHB promotes financial inclusion by providing access to financial services to those lacking access to the traditional finance (TradFi) system as well as those seeking halal alternatives to TradFi.
The native token, $MRHB is the world’s first halal crypto token that aims to tackle conventional interest-bearing products of traditional finance. It serves as a means of payment in the MRHB ecosystem and will also be used as a governance token in the future. The issuance of $MRHB, its usage features, current and future benefits, and its rights, complies with Islamic principles.
The MRHB Token as well as its budding ecosystem can already be accessed via the Sahal Wallet, a cross-chain self-custodial wallet that would allow only halal crypto tokens to be transacted. The Sahal Wallet is not just a crypto wallet but also acts as the gateway to the entire MRHB ecosystem. Users can access other halal DeFi products via the highly secure Sahal Wallet. Users can trade tokenized commodities such as gold and silver directly on TijarX, which is accessible via the wallet.
With its halal crypto token and halal DeFi products, MRHB is set on restoring faith in cryptocurrency among Muslims and other faith-based communities. Indeed, MRHB has already garnered more than 100,000 active supporters from all around the world. The existence of the MRHB community shows that faith in cryptocurrency and DeFi can be restored. Guided by ethical Islamic principles, MRHB will continue building its ecosystem to include a complete set of DeFi products that are accessible to all.
Download the Sahal Wallet app and experience halal DeFi like no other.