{Kantakji Group}. Add '14145' BITCOIN FROM THE PERSPECTIVE OF ECONOMICS AND ISLAMIC LAW

[Hala Neffati]

*BITCOIN*

*FROM THE PERSPECTIVE OF ECONOMICS AND ISLAMIC LAW*

*http://www.raqaba.co.uk/?q=en/node/1768
*



1.   At present, specialists are hamstrung from offering a Shari’a
opinion on the production of Bitcoin by the sheer abundance of questions
around this electronic currency combined with the lack of conceptual
clarity around the product. In some respects the haze that surrounds the
issue arises out of insufficiency of the information available. What has
been stated to date has been inadequate, and has been of a rather
exploratory and conceptualizing character. The present paper would perhaps
initiate a hitherto unprecedented stage in which new steps are taken in
dealing with this exigency in terms of Islamic law.

2.   I will attempt here to provide a seminal foundation for academic
dialogue on the issue with due emphasis upon the nature of the problem as a
contemporary exigency. It exhibits a great degree of similarity to
fiduciary paper money unbacked by gold and silver whose status as money
stems from confidence reposed in its issuer, who is the sovereign authority
of every country, and whose value changes in relation to a country’s trade
balance, i.e. its exports and imports in the first instance, followed by
investments and speculations in the currency markets as the chief factor
influencing the stability or unsteadiness of a currency vis-a-vis other
currencies.

3.   The available information brings into relief three aspects to
Bitcoin: (1) production; (2) dealing and trading in Bitcoin; and (3)
entering the Bitcoin network as an investor. I will presently deal with the
first and second aspects only, leaving aside the third on account of the
fact that it lacks universality as compared to aspects 1 and 2, and in
consideration of it holding greater relation to the mechanics of network
marketing against which many a fatwa has warned.

4.   *Production of the digital currency Bitcoin:* It is important at
the outset to differentiate between Bitcoin as a digital currency on the
one hand, and the possibility of converting any real currency to a digital
or electronic currency. I will initially comment upon this latter aspect
and later return to the first as it is the actual issue under discussion.

*Converting any currency into digital currency: *It is possible to convert,
or *encrypt*, real currency into digital or electronic currency in pursuit
of a faster and safer means to exchange and trade in currencies, and
perhaps even money laundering. This is because digital currency steps over
the obstacles which state oversight imposes on currencies.

5.   Purpose and intent notwithstanding, this much produces nothing new
in terms of the Islamic legal position. The mere reference to a currency in
an alternative format does nothing to alter the reality of it being, for
example, dollars or pounds sterling, even when expressed as an equivalent
value under a new descriptor, eg. *$100 = 1 unit of digital currency X*.

6.As long as it remains possible to revert to the original currency
through *decryption*, matters will remain reasonable, acceptable and free
from substantive change. In the use of currency cards, bank transfers or
prepaid banks cards we actually find something that correlates to it in
form, with one important distinction, which is that these mediums operate
on units of the original currency itself while Bitcoin utilizes a new
equivalent value and a new unit descriptor. This would then bring us to the
situation where a real currency has been converted into Bitcoin via
exchange, which is what I will presently discuss.

7.   *Bitcoin as digital currency:* There are, as stated in the
introduction, two aspects with which I will deal: *firstly*, production of
this currency; and *secondly*, dealing with it and its acceptability as
currency. To me, the second aspect appears to be much easier that the
first. I will begin with the first.

8.   *Production of the digital currency Bitcoin: *What is meant by
production here is the issuance of currency, comparable to the minting of
currency as in when a sovereign power prints dollars etc. With Bitcoin,
however, there is no sovereign issuing authority. What we do have,
according to the available information, is that anyone can issue Bitcoin
currency through the process referred to as *mining* on specific internet
sites. This is done via the use of an electronic program that requires a
high powered computer. The computer process culminates in the production of
a specific number of units of the digital currency Bitcoin. Accordingly,
anyone can use the program and issue Bitcoin currency with which to credit
his own internet based account.

9.   This method of production forms a substantive point of divergence
between sovereign issued currency, and Bitcoin. The latter is not issued by
an authority who defines and guarantees it. This particular aspect of
Bitcoin is wrapped in obscurity.

Re: {Kantakji Group}. Add '14144' طلب مساعدة

[Dr. Samer Kantakji]

بسم الله الرحمن الرحيم
السلام عليكم ورحمة الله وبركاته

هذه بيانات تجدونها محدثة باستمرار لدى المجلس العام للبنوك والمرسسات المالية
الإسلامية www.cibafi.org لأنها جزء من عمله.

لا تنس الصلاة على نبي الرحمة والدعاء الصالح للمسلمين..

*Dr. Samer Kantakji,*
Islamic Business Research Center Chairman,
Global Islamic Economics Magazine Editor in Chief,

Email 1 , Email 2 
Mobile: +963 94 4273 000
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Tel / Fax: +963 33 2518 535
SKYPE: Kantakji
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سامر مظهر قنطقجي

2017-05-16 18:36 GMT+08:00 zindin89 roudani15 :

> السﻻم عليكم ورحمة الله وبركاته،
> من فضلكم احتاج لقاعدة بيانات البنوك اﻹسﻻمية.
> جزاكم الله خيرا.
>
> --
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> سياسة النشر في المجموعة:
> ترك ما عارض أهل السنة والجماعة... الاكتفاء بأمور ذات علاقة بالاقتصاد
> الإسلامي وعلومه ولو بالشيء البسيط، ويستثنى من هذا مايتعلق بالشأن العام على
> مستوى الأمة... عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه باستثناء الأمر
> العام الذي يهم عامة المسلمين... تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد
> الأدب وخاصة منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم
> على التفاعل الإيجابي... ترك المديح الشخصي...إن كل المقالات والآراء المنشورة
> تُعبر عن رأي أصحابها، ولا تعبّر عن رأي إدارة المجموعة بالضرورة.
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سياسة النشر في المجموعة:
ترك ما عارض أهل السنة والجماعة... الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي 
وعلومه ولو بالشيء البسيط، ويستثنى من هذا مايتعلق بالشأن العام على مستوى 
الأمة... عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه باستثناء الأمر العام الذي 
يهم عامة المسلمين... تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة 
منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل 
الإيجابي... ترك المديح الشخصي...إن كل المقالات والآراء المنشورة تُعبر عن رأي 
أصحابها، ولا تعبّر عن رأي إدارة المجموعة بالضرورة.
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{Kantakji Group}. Add '14143' طلب مساعدة

[zindin89 roudani15]

السﻻم عليكم ورحمة الله وبركاته،
من فضلكم احتاج لقاعدة بيانات البنوك اﻹسﻻمية.
جزاكم الله خيرا.

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For more options, visit this group at
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سياسة النشر في المجموعة:
ترك ما عارض أهل السنة والجماعة... الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي 
وعلومه ولو بالشيء البسيط، ويستثنى من هذا مايتعلق بالشأن العام على مستوى 
الأمة... عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه باستثناء الأمر العام الذي 
يهم عامة المسلمين... تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة 
منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل 
الإيجابي... ترك المديح الشخصي...إن كل المقالات والآراء المنشورة تُعبر عن رأي 
أصحابها، ولا تعبّر عن رأي إدارة المجموعة بالضرورة.
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{Kantakji Group}. Add '14142' Fwd: Press Release: The IFSB Prudential Database Makes Available 12 Quarters of Islamic Banking Sector Data, Now Covers 20 Countries

[Maan Barazy]

-- Forwarded message --
From: IFSB Secretariat 
Date: 2017-05-15 16:48 GMT+03:00
Subject: Press Release: The IFSB Prudential Database Makes Available 12
Quarters of Islamic Banking Sector Data, Now Covers 20 Countries
To: maanbar...@gmail.com




* ISLAMIC FINANCIAL SERVICES BOARD*

*Media Contact: *

*Mrs** Siham Ismail Tel: 6 03 9195 1430 / Email: **si...@ifsb.org*






*The IFSB Prudential Database Makes Available 12 Quarters of Islamic
Banking Sector Data, Now Covers 20 Countries *



*Kuala Lumpur, 15 May 2017 – The Islamic Financial Services Board (IFSB)
announces its sixth dissemination of country-level data for Q2-Q3 of 2016
on financial soundness and growth of the Islamic banking systems from 17
IFSB member jurisdictions, and the addition of three new country
contributors to the IFSB’s Prudential and Structural Islamic Financial
Indicators (PSIFIs) project. The new countries – The Bank of England,
Central Bank of Lebanon (Banque du Liban) and Palestine Monetary Authority
– bring the number of contributors to the PSIFIs project to 20
jurisdictions.*

*This sixth dissemination presents a total of 12 quarters of Islamic
banking sector data, from Q4 of 2013 to Q3 of 2016, from 17 member
countries* – Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Indonesia,
Iran, Jordan, Kuwait, Malaysia, Nigeria, Oman, Pakistan, Saudi Arabia,
Sudan, Turkey, and United Arab Emirates.

The Acting Secretary-General of the IFSB, Mr. Zahid ur Rehman Khokher
stated, “I am pleased that the coverage of IFSB PSIFIs database project is
extending to a new region as The Bank of England joins this project.
Similarly, the participation of banking supervisors from Lebanon and
Palestine will further strengthen the coverage of this project from the
Middle East region.” Mr. Khokher further announced that with the approval
of the IFSB Council in its last meeting in April 2017, “the IFSB will
extend the coverage of this PSIFIs project to the *takaful* and Islamic
capital market sectors. The IFSB will work closely with its member RSAs
from these two sectors and multilateral organisations on the selection of
the relevant soundness indicators and the preparation of a Compilation
Guide for the reference of contributing organisations and users”.

A summary of key PSIFI indicators is given below.

*Growth of Islamic Banking*

Based on the available data, the total assets of the Islamic banking
industry grew from USD 1,299 billion in 2015Q3 to USD 1,441 billion in
2016Q3 (calculated from country-wise aggregated data converted into USD
terms using end-period exchange rates). Total funding/liabilities increased
from USD 1,205 billion in 2015Q3 to USD 1,318 billion in 2016Q3. Financing
by Islamic banks from the jurisdictions participating in the PSIFIs project
reached USD 939 billion in 2016Q3 from USD 826 billion in 2016Q3. The data
on “financing by type of Shariah-compliant contracts” reveals that five
major financing contracts used by the Islamic banking industry as of 2016Q3
were: *Murabahah* (37.6%), commodity *Murabahah**/Tawwaruq* (22.5%),
*Ijarah/Ijarah
Muntahia Bittamlik* (13.8%), *Bay Bithaman Ajil* (11.0%), and *Salam *(5.6%)
.

*Capital Adequacy*

Capital adequacy provides an important indication of the health and
financial soundness of the banking industry in a jurisdiction. As of the
2016Q3, the weighted-average capital adequacy ratio and weighted-average
Tier 1 capital ratio from available data of full-fledged Islamic banks of
13 jurisdictions were 17.5% and 16.3 % respectively, significantly higher
than the regulatory requirements, while these  ratios were 12.6% and 10.1%
at the same period of the previous year (2015Q3) respectively.

*Asset Quality*

On asset quality indicators, gross non-performing financing ratio (gross
non-performing financing to total financing) showed a slight improvement
with a decrease from 5.9% in 2015Q3 to 5.3% in 2016Q3. However, a
deterioration is apparent in the net non-performing financing to capital
ratio which increased sharply from 16.1% in 2015Q3 to 25.6% in 2016Q3.

*Earnings*

Islamic banks and Islamic windows in the PSIFIs member countries generally
maintained comparable rates of return on assets (ROA) and return on equity
(ROE) during the periods under report. Overall, the ROA and ROE were 1.45%
and 11.94% in 2016Q3 as compared to 1.36% and 13.86% in 2015Q3 respectively.

*Liquidity*

On the liquidity indicators, the liquid assets ratio (liquid assets to
total assets) and liquid assets to short-term liabilities ratio decreased
over the period from 39.6% and 15.1% in 2015Q3 to 35.6% and 13.9% in 2016Q3
respectively. Five PSIFIs member countries reported the newly introduced
Liquidity Coverage Ratio (LCR), which all exceeded the 100 percent
benchmark.

*Size of Islamic Banking*

The number of full-fledged Islamic banks and Islamic windows of
conventional banks in 17 countries stood at 170 and 83 in 2016Q3 as
compared to 169 and 85 in 2015Q3 resp