Naturally, the integrity of currencies of all kinds is dependent on the ethics of both users and issuers. It turns out that last month, a would-be rescuing ideology, as it were, announced itself, as Salim Essaid notes in AL-Monitor:
As FTX’s former CEO faces US criminal charges for defrauding investors and stealing billions from customers before filing for bankruptcy in November, new Islamic finance-based coins are being launched by companies claiming that their checks and balances can help reinstate faith in cryptocurrencies.
“Islamic finance can help provide protections with its ethical practices, using the transparency of blockchain technology,” said Mohammed AlKaff AlHashmi, co-founder and chief business officer of Haqq Association, a nonprofit digital financial services company that follows Islamic law.
From my reading of history, corruption is a pan-ideology phenomenon. Anywhere positions of trust are necessary in order to enable a project or institution, there must be safeguards instituted, or those positions become targets for those of a weak moral disposition. Essaid further notes:
Yet community-centric guidance alone cannot replace the role of regulators to hold companies accountable. AlHashmi explained that they do not have the full authority to tell a company that their project is not compliant with Islamic finance, mainly because that defeats the purpose of using decentralized tools such as crypto and blockchain. But the Sharia verification mark will show the label of community trust.
Which is more or less an acknowledgment of my point.
We shall see. I expect that in a few years the project will be shut down for unpopularity, inefficiency, or corruption. Or because crypto has been discarded.
