basically Sharia is something that is
close to my heart because by profession
I'm the Sherriff scholar advising a
number of client throughout the entire
world and one of our newest client it's
hello goal the first sharia-compliant
coin or token I wish you happened us a
few months ago and we look forward to
have more and more products on the
crypto on the blockchain on this but
only to be indoors a sharukh compliant
because you know why we have been
listening to many speakers we have to be
inclusive we have to open up the whole
industry to be not exclusive but to be
able to interact and to embed with
everyone on this planet and perhaps
Sharia is the new entrant to both of you
to consider how the share can work
together to make your products your sub
products your upstream and downstream
services and products are compatible to
something that the Muslim at large would
like to be part of the whole industry so
I have a few slides to go through
basically so this is some of the table
of content that we have to go through
I'm gonna advise us it's my own company
I set up the company what 12 years ago
base in KL kuala lumpur in dubai and
some other countries around the globe so
we do what we are best at to look into
the sheriff principle we service
financial products and nowadays
technology and I'm personally very
interested and very keen to look into in
and out of the technology and we are now
working with helium to provide the
Sharia what pepper hopefully we can
launch the white paper in the next few
weeks if not you know a few days to make
sure that we have something to
contribute and to share the Sharia
high-level micro perspective on this
technology and how could this product
can be a role by beyond you know
beyond specific segments of the client
and the market so this is some of the
what we do in the past 12 years this our
Sharia what scholars we have engaged
reputable people from across the world
to give the endorsement you know why
because whenever it is endorsed by a
group of scholars who are well
recognized internationally the product
could be received without any you know
hesitation and without any fear or any
dispute by the world community this is
what we do I will skip some of the
issues perhaps not relevant to you but
you can see from the from the slide we
do almost everything product development
enhancement and audit to make sure that
whatever we endorse is taken all the way
through until the end of the day to
sustain the share a compliant feature of
the product this is a funny I said two
point three trillion very small industry
but growing at the sea AG are 20% a year
then going to grow bigger and bigger and
hopefully with the technology this
technology with the big data we did you
know active intelligence and the
blockchain will push further the
technology industry further because it
is now become borderless and everyone
can participate both who are bankable
and both who are not unbanked
many Muslims around the globe they are
not back they are not bankable so then
expected my technology to be part of the
whole industry and this is the
revolution we are looking into Muslim in
Indonesia and the part of the world they
have the desire to be part of the system
but they can because they are not
bankable as yet but this much technology
we have seen that happening around the
globe can push up the market share of
this industry hopefully in the next five
to ten years
and we can achieve a higher market share
of differential access of the world some
of the
numbers you might be interested to know
where is if I'm finance at the moment in
both Islamic countries and also
non-islamic countries in UK in United
Kingdom in Hong Kong such Africa in
Europe we have some spot of the
activities happening around the globe
but not on blockchain as yet on their
born and fun and the banking and you
know all the sophisticated products
purely financial in nature so what is a
fine and I tried to make it simple for
everyone it's a final is basically a
system which is based on transparency
based on traceability and away from the
interests or if you like the usually
component of the financial products
because there is a very first
prohibition and a fine and we cannot
charge interest on money lend out
because money has no value we need money
to exchange to buy goods and services of
course if everything is free of charge
in this world there's no value for money
from the Sharia perspective we need
money to simply buy and you know and pay
for our needs in the society so this is
the whole idea but to impose a premium
on the money lent out is something that
which is not permissible not only under
Islamic perspective and the other
religion as well because it is very much
giving something which is beyond the
full meaning of medium of exchange the
second element is about uncertainty and
it's very important for the blockchain
and encrypt us because it can help to
fight again anything which is dubious
which is not clear enough which is
uncertain which is not up to the
standard to make sure that finance is
beyond any issues of uncertainty and the
third is very much gambling or you've
liked game of chance we have to put
aside any products any transaction which
is very much you know based on
a game of luck a game of chance at the
end of it is you have to be real in your
economic activities you have to put the
money in real economy to generate wealth
for the whole society you cannot simply
go to the bank put the money in the bank
and expect to be rewarded by putting the
money in the bank or by simply putting
the money in the casino and
what-have-you so this is something that
Islam would not be you know tolerant
with because this is not only not good
from the ethical perspective it does not
help to grow the economy in the long
term next please
so Kryptos Sobe were I'm also a scholar
for the last 25 years I didn't hear
anything about cryptos but I was part of
the other group of scholars in the world
we were astonished to see how the world
has responded to the if you like
blockchain
revolution at any point in time and we
were invited by a default not by the
Denko to look into what would be the
sharing aspect of these Kryptos and i
started doing my own research attaining
so many seminar conferences try to
understand what is basically crypto is
all about and I have given many lectures
and what have you there is a history and
which will call me up and invite our
money to be part of the consultant to
put the Sharia mindset to look into the
eternal foundation this is my country
and the ether at the end of the day to
see how to make everything compatible to
the sheriff principle so that everyone
in this world can be part of the whole
revolution of cryptos and we are very
excited we are at the end of the journey
and for help in the next few weeks we
can share the white paper that we have
worked together our money Virgil and
Activia cook one of good friends
supporting us all the way to make sure
that the paper is ready for the
consumption of the whole community of
course and a crypto there are three
issues currency which is the most
debatable issue at the moment the
commodity weather
is a commodity or token of utility or
just neither so we are we are putting
our own thought our own process and we
have discussed for each and every aspect
of it whether it is a currency or which
is a commodity or it is neither earthly
speaking if I can share with you my
point of view I would argue that Kryptos
subject to the technical compliant M of
cryptography and blockchain and high
standard of the technology they are not
currency in nature but they are a good
medium of exchange not amounting to
currency so this my personal point of
view which I'm trying to argue and put
it in many other seminar and conferences
and I am very friendly to the Kryptos
hopefully that will be the new digital
currency in the future next this is
important slide I think we can take away
this like with you this is what I'm
trying to say and to share with you
Shara is very close to Kryptos and the
blockchain because Sharia Islam in
general is based on five important
vertical decentralized we don't have
centralized system even for the
interpretation we do have one comment
institution to dictate we open up the
freedom of expression safety and
security we try to help to protect the
interest in the rights of the people at
the end of the day change of data
perhaps again you are not aware of in
Islamic history from for the last 1,000
four years ago we don't have blockchain
by then of course we do have the data we
have the technology but we have used the
change to reinforce the security of data
so we have many many transmitters they
have to transmit the knowledge for one
person to another and that quality of
transmitters should be reinforced by the
number the quality of notes if you like
in the current time they cannot spur in
the past we call transmitters of the
knowledge and the data and they are
immutable and fairness and transparent
these are the fourth vehicle of
sheriff compliant perspective and
perfectly you know suit the whole
architecture and algorism of blockchain
and smart technology to a large extent
status of ETA I will skip this one
basically we are putting the right the
final conclusion on either we are
finalizing the research and we are very
much you know saying that it is a
Shariah compliant token that can be used
for many other transaction but we have
to share with rich you and with the
whole community the basis of our
argument and next I will skip this one
okay it's either a compliant we have to
wait for that okay otherwise there's no
more fun to share in the next few weeks
and smart contract
I am very intrigued at smart contract a
very shut up compliant I can see it now
I can share with our smart countries
very much our compliant and very very
happy to see that because it has all the
political and features to make sure it
is sure a compliant and provided no we
have to exclude the purpose the sector
and the features which are complain like
all the alcohol and non halal food and
so and so forth this interior you cannot
run away we have to stick to that sector
which is prohibitive but the rest other
than these three four or five restricted
sectors the rest should be sure
compliant and acceptable and the last
one fizzy would be this is something
little bit at the moment proof of work
which is not the issue proof of stick we
are almost there
persuade speaking and not to cut my
other surely about scholars I would
personally argue proof of stake it's not
only sure a compliant but it is the best
way of doing thing to make sure we can
cut cost it can give more efficiency to
our own system and we hope that prof
estate will be a new technology to
support the whole industry with that I
would like to thank you very much
okay and I would like to end my
presentation by quoting the Mithila tic
Martin Luther King when he was saying
there's always the right time to do what
is right and the time is right to do
Sharia and cryptos thank you very much
yeah more than happy to the easy
question only hello thank you very much
for taking the time to talk to us about
this topic it's very fascinating one
question I do have you quickly mentioned
it so proof of stake is inherently some
type of form of getting interest on your
investment so if the whole system would
rely on such a consensus algorithm with
that inherently make ether non
sharia-compliant
and would you still consider smart
contracts therefore to be sure you're
compliant thank you yeah
it is very much on a compliant we caught
it at the enhancer the value of the
whole system cheaper faster quicker and
safer if you like and anything that can
lead to that high level of satisfaction
that is should we shall compare remember
my slightest now we have to offer three
things only interest or usually a
gambling or uncertainty and the rest
it's a free world for everyone to do
[Music]
definitely from my perspective it is not
a currency it is not a commodity it is a
new way of doing T it's a medium of
exchange but not amounting to currency
as I speak at the moment so it's very
unique because it has all the features
of currency medium of exchange to a
value unique measurement and what have
you but it might like you might like
some of the element of it so at the end
of the day it might not be harmful to
use it
as the currency acceptable to the
community given any community in the
world so this is my very much
sharia-compliant way of looking at it as
we speak
please sorry I think you're managing yes
sorry I have to follow the okay so you
had a slide about this but I was
wondering if you could elaborate more on
the principles you said of like the
crypto community the things that we
value that overlap with some of the
things that you talked about you had
like the five things on the slide yeah
yeah could you talk a little more about
that sure but we need one over for that
I mean okay basically we are more than
happy to put that in our slide that mean
email or whatever after this because in
it's very much a society discussion
because the five vertical just now
because these are the very fundamental
of Sharia and how blockchain sorondo DC
from the very first day of Sharia 1400s
ago this are the vertical of the
financial dealing in Sharia it is about
transparency it's about you know the
proof of security and what have you so
they I'm very delighted to see how the
blockchain comes and how the crypto
comes to reinforce this kind of five
vertical of the Sharia financial
algorithm for the past how many years or
centuries but identity I can go through
because we'll take some time I'd want to
take other speakers time if you allow me
to say that thank you one quick question
following up on for those of us who very
interesting topic thank you by the way
feel really well presented I appreciate
that
for proof of stake where it's sort of
considered a good community reward that
does something very useful
can you just it would be really helpful
to owes it those of us who don't have
the nuance on what bad interest is
because people call the proof of stake
reward interest in the Western systems
and so what is like a bad interest that
would have made it like not allowed and
regular okay interestingly I was being
engaged by some other colleagues someone
in the in the fertility
and I have gone through the discussion I
don't need this interest from the share
a point of view it might not you might
call interest but interest has many
meanings in the financial chénier recall
carried interest recall you know many
other thing interest but they are not
clinically from the clinical definition
interest from share perspective because
it's not a guaranteed amount of money
given to your stick in the in the
platform number one number two you are
coming as a membership so if kind of
membership kind of structure and you
might have some reward for taking that
risk initially so and move and on and on
at the end of the day I can sum up with
confident for me personally this not
only interests and this is away from
interest and this is something a smart
way of doing to cut cost and to make
sure that the proof of stake is the way
forward to do any but doing about the
interest internet we use for many other
thing which is not interested in SN even
in the financial world at the moment I'm
third year process of trying to achieve
compliance where have you been where
were the biggest hurdles throughout the
entire process if you're trying to
achieve compliance and ensure compliance
which are perspective where have like
where were the biggest hurdles you know
where biggest problems and the biggest
problem isn't trying to get solution
yeah I think we have to see whether it
has all the features of whatever you
mentioned no issue of interest and and
gambling and uncertainty everything
should be transparent and the purpose of
you issuing any token should be sure a
compliant I mean in Islam we have
certain prohibitive sectors like tobacco
sorry for some of you you know the the
the weaponry the liquor and what have
you so we have to respect that kind of
sector and in the rest we can roll out
the technology without any problem
you mentioned that you consider either a
medium exchange but not a currency I
would confused how how would it be
considered medium exchange but not a
currency yeah I think one of the points
you made is that it's not globally
accepted he has a currency and just
another currency
but making if a currency is only used
with one one nation or one communities
that doesn't disqualify it as yeah I
think I would I would agree to that
point of view because to be deem as
currency it should be accepted by the
whole community but at the moment it is
not the case it is a currency within the
group and that is good enough because we
can use the you know the ETA on the
interim platform to buy and sell it is
good enough to transact and to behave
like one which is not necessarily
currency from shallow perspective it
doesn't matter either way you call it
currency or you call it token of utility
as law it can serve the purpose for you
to buy and sell goods this is good
enough and from from that perspective
here ok so I got one so I'm talking with
the with you with it the proof of stake
research team and they want to know
hypothetically if there were zero
rewards and there was only transaction
fees would that improve proof of stake
in relation to Sharia compliance I'm
neutral on debt that's it yes
you