According to Datuk Mohd Daud Bakar, chairman of the Shariah Advisory Council of Bank Negara Malaysia, the potential of cryptocurrencies in Islamic finance is bright driven by the economic transition towards digital in line with the new norms practiced throughout the country.
He added that the currency is still new in Islamic finance but has the potential to make a profit in the sector.
However, they are also facing a crisis, but with the new norm, digital has become one of the mediums that is very close to the public as a result of the movement control orders implemented.
In addition, he stated that cryptocurrency is not a riddle or perception, but it involves a conflict to provide understanding to the public because cryptocurrency is something new.
Although the rest of the world, including Malaysia, is undergoing a digital transformation in doing business due to the outbreak of the Covid-19 pandemic, currency is a foreign matter.
Existing currencies, still need the entire ecosystem to transfer it from one party to another and sometimes even take a long time that is a few days.
Therefore, it is seen as inefficient. The fact is, the digital economy has grown tremendously and attractively but there is no solution involving the issue. In fact, many are questioning the ability of digital currencies to create more effective systems.
In addition, it is not about the new currency, perhaps the rulers can introduce their own fiat currency that has been converted to digital or better known as crypto, a stable coin supported by cryptography
