Blockchain's Role In Islamic Finance Highlighted By Haqq Network Co-Founder

According to Odaily, Haqq Network co-founder Mohemed AlKaff AlHashmi emphasized in a recent interview that blockchain systems are the optimal solution for ensuring compliance with Islamic law, which includes stringent financial regulations. AlHashmi highlighted the transparency, traceability, and community governance structures of blockchain as key advantages. He explained that financial activities such as interest-based lending, usury, and gambling are prohibited in Islam. The best way to ensure that income or funds come from 'halal' or lawful sources is by using blockchain to verify transactions. Historically, verifying whether income sources and investments comply with Islamic law has been challenging due to technological limitations, the commingling of institutional funds, and the opacity of traditional financial systems. AlHashmi noted that the Islamic finance industry is valued at approximately $4 trillion and could potentially double in the next five years. A report by Chainalysis in September 2024 found that the Middle East and North Africa region, primarily composed of Muslim and Arabic-speaking countries, accounted for 7.5% of global cryptocurrency transaction volume from July 2023 to June 2024.