November 28 news Beijing November 21, 2017Halal Chain global conference and the Dubai block chain summit held in Dubai, United Arab Emirates. (Halal Chain only website: halalchain.ae)
Dr. Farrukh Habib, a member of the panel of the Halal Chain project, took an interview with Golden Finance after attending the meeting.
Dr. Farrukh Habib is a Muslim jurist and an Islamic financial expert who is a Fellow of the International Institute for the Study of Islamic Law and published an article as co-editor of several international Islamic financial academic quarterlies.
(Right, Farrukh Habib, an Islamic financial expert)
The Halal Chain blockchain project is co-sponsored by all sectors of the Islamic economy including but not limited to product and equipment manufacturers, end-consumers, Islamic financial institutions, other capital investors, industry blockchain and IoT developers, among others . The project will open the door for all aspects of the market, such as the project blockchain will become the world's largest halal food tracking system; other projects cross-border settlement, trading and payment blockchain system will be open to all compliance agencies and individuals use. All of these eco-designs are centered on Islamic economic development and will be able to effectively meet the needs of Muslim countries and society.
As an Islamic financial expert, Dr. Farrukh first introduced some characteristics and overview of the Islamic economy: "The Islamic economy has its own characteristics and model. Currently, the borrowing in the Islamic economy accounts for a large proportion, but we must know that according to the Islamic teachings and Corresponding laws, bank deposits and loans and most of the financial activities are forbidden by interest. The structure of the Islamic financial industry is relatively complex and is required to operate according to certain financial system regulations. It must conform to sharia law and Qur'an, and emphasize that financial activities and entities Direct economic activity. "
For example, Dr. Farrukh vividly uses the Islamic real estate industry as an example. "For example, customers in other countries go to a bank and want to buy a house from a bank for $ 1 million. Yes, the bank will lend to the customer after assessment and charge 10% Interest, and they do not really care what the customer does with the money, but the customer has to pay off the loan and pay the interest.And in Islamic countries, the bank customers apply for loans to buy a house, Islamic Bank will enable customers to carry out Pick and buy the house, the bank becomes the owner of the house, and then provide the house to the client, equivalent to Islamic Bank acting as an intermediary, where the client can live in the house and gradually repay the bank later Bought the property and got the ownership, and then charged 10% on the basis of repayment of the customer's intermediary service fee, so the result is similar to the direct financial lending, but the way and the process are very different. "
Dr. Farrukh continued: "Since the 1980s, Islamic banks have established such a model that traditional Islamic financial models face issues such as complicated transactions, low efficiency and high costs, Technologies such as smart contracts in the chain, distributed ledgers and lightning payments can dramatically improve these conditions. "
The Halal Chain project explores the potential for Islamic economic development by combining the traditional halal industry with the digital network economy. The birth of this project marks a new era in the development of the Islamic economy. The Dubai government has put blockchain technology on the agenda and has a well-defined workplan that will be fully operational with blockchain technology by all government agencies in Dubai by 2020, with Halal Chain as its core component section.
"The Islamic banking and related financial markets are likely to reach about $ 7 trillion in size in the coming years and the Halal Chain project will easily be able to connect with the Islamic financial sector and I believe it will materially influence the entire Islamic community in the future The economy plays an optimization role, "Dr. Farrukh said.