Cryptocurrency: The Digital Coin (DOCUMENTARY)



we need to go back to basics ie what does a currency need to do as I said it needs to be a store of value a medium of exchange and there has to be a system which is alternative to the fractional reserve banking system when I started researching cryptocurrencies ooh these were all the boxes are getting ticked and so well there's something here that needs to be discussed between the Islamic finance experts and the cryptocurrency experts I think the usage of crypto currencies know Islamic finance is is going to be a very valid I think that there is many aníbal components of cryptocurrency that meet Islamic Scherrer standards the digital world a mass of human activity transmitted across the planet with just the push of a button technically and socially we have changed the way we communicate business meetings are no longer confined to the boardroom and purchases can be made from a tiny screen inside your pocket we live in a digital world so it's I think that the old-fashioned way of doing the banking system is it's a way and if you see also today on the market that lots of banking and banks look on digital a industry in the cryptocurrencies so absolutely this is here to stay in the digital world there needs to be a way for people to exchange value so that they can buy and sell things or have having received services so it was it's ideal for that I mean you can't very well send you know a ten pound note by the internet to pay for something so you need some way to do it currently the option that most people are using our credit cards or debit cards but these are payment mechanisms that were designed 40 years ago and it's quite old technologies as I said said as an example you know how many people are still walking around with a foot phone almost everybody has a smartphone so as technology progresses so do the mechanisms that we use and as technology is moved to digital the requirement for digital currency became clear in recent years the digital boundaries have expanded to such a degree that where once it was about how to shrink the size of a computer or mobile phone now it's about how to use technical innovations to shake up the system that governs them enter the fledgling world of cryptocurrency crypto currency is a currency design to be used on the Internet and it's a virtual currency a digital currency that you're able to send and receive payments of a value as a medium of exchange in a medium of payment cryptocurrencies like currency but is totally digital and it has no physical like coins or anything it's only up in the Internet and it's more like behaving also like gold and silver and when we have said the amount of the currents how much we're going to do it's going to be the finite number so if I send you a coin and you send it to someone in China and they send it someone in America you can actually track the DNA of that coin the serial number of that coin exactly and precisely where it is at anytime also known as digital currency cryptocurrency is still very much in its infancy and was born out of deep-rooted frustrations with the banking sector after the 2008 financial crash a year later in 2009 Bitcoin arrived and the cryptocurrency idea went viral Bitcoin is the very first cryptocurrency and they have the first mover advantage but in its in its design it's really designed as an investment vehicle in fact many jurisdictions like the US government and also saying here in the UK have classified Bitcoin as a commodity or an investment legal and tax it as such I'm really happy about Bitcoin and its success how it came to the market and so on and because obviously our company wouldn't be in this situation if it wouldn't be for Bitcoin and they were the innovators so then god we are not the first cryptocurrency on the market so we have we have had enough time to take all the good benefits from cryptocurrency bitcoin is the most successful example of cryptocurrency to date it exists without any interference from regulatory bodies such as banks and governments and has a market capitalization of over ten billion dollars despite some setbacks the average number of daily transactions is growing year-on-year and currently one bitcoin is worth over six hundred US dollars approximately 500 pounds in a London hotel next to Europe's busiest airport Heathrow a summit is being held to discuss this growing phenomenon the gathering of financial leaders and experts is not about the conventional though by any means it's about the alternative how cryptocurrency can benefit Islamic finance it came together very quickly because as soon as I started to talk to the experts straight away they said yeah you're onto something here and and you know we need to get the right people around the table to discuss this issue and that's exactly what's happening today it wasn't on the agenda of Islamic finance as yet it's only being on agenda mainly the financial markets and the Western regulators and but rightly it should be considered by Islamic finance simultaneously while the main world main financial world is making up their mind we should be ready this is what we're here to find out today this is what we're here to get hopefully agreements and certifications that whatever cryptocurrency is about the basic fundamental rules of cryptocurrency how it's created how it's circulated is Shariah compliant there's no interest element on it the question of whether crypto currency can be Shariah compliant is one of the main themes at the summit according to some professionals in the industry Islamic finance although hugely popular in countries like Malaysia or Saudi Arabia is being held back by a mainstream system that favors debt and interest where money is seen as a commodity you see money should not be dictated by politics and governments and banks money should have a value of its own and it should be dictated by supply and demand and it should be dictated by how usable it is as as what the intrinsic value of it is Wow it can be used as a commodity – and as a form of exchange what I have seen is that the RIBA issue is only applicable when these some currency is really established when it is established and it becomes norm and accepted means of exchange then the RIBA questions come so at the moment because it's not a proper currency as yet it's just like a niche market and niche goods these rules of RIBA do not apply as far as I know I think it certainly puts something very new on the table a new phenomenon of cryptocurrency Islamic finance at its roots it believes that a medium of exchange in terms of money money should be a medium of exchange in a store of value today we see a monetary system globally which has those functions but also whereby money is almost traded as a commodity and there's interest and debt at the heart of that system and that system is fractional reserve banking fractional reserve banking is a system whereby only a small amount of actual cash makes up a banks deposits and those banks are incentivized to hold greater reserves through a payment of interest which of course in Islamic finance is not permissible so many commentators have said that actually you know with can Islamic banking flourish in that environment and there's a big debate whether it can or not but you know the point is we have the system as it is now we have to work within that and we have to find solutions within that system at the summit experts are trying to work out if crypto currencies can be key in the fight to help reinforce so-called ethical practices in the financial world along with the social and environmental impacts that Islamic finance seeks to address it's never been discussed fully and from all different angles in terms of how crypto currency could apply to the various Islamic principles you know over the last few years we've we've experienced all kinds of problems in in the economies of our countries and and we all feel kind of it at some point or other we've all felt quite sort of cheated in in the way that our our money has decreased in value so the way that I believe that cryptocurrency will be the way forward is the answer to that missing jigsaw puzzle is that cryptocurrency is not based on fiat currency there's a shared risk between the customer and the under and the bank they said there's no interest placed in it there's um I believe that this is the way forward there are claims that cryptocurrency might be more ethical and more equitable but this clear aimes need to be seen and worked on on the ground rather than just spoken about it's just the selling point at the moment but there is no real data and real real life information about it I think it's a growing segment of people that are saying you know this is interesting I see some benefit but I need to learn more about it we're at the point right now with crypto currencies where there's still some education process that has to go go on and still some refinement of the market and how the crypto currencies are are you financial transparency is also key especially when clarifying Sharia compliant products so-called online Ledger's of crypto currency transactions called block chains are publicly available in bitcoins case however the users identity is hidden so does this open up the possibility of fraud if I send you a coin and you send it to someone in China and they send it someone in America you can actually track the DNA of that coin the serial number of that coin exactly and precisely where it is at any time so it can't be used for criminal activities for example you know it can't be used for them you know by arms dealers and and drugs dealers and so on so easily because it's transparent I see that as as a challenge in the type of cryptocurrency structure that's been set up so Bitcoin is totally decentralized which allows somebody to come in and do these things some of the other crypto currencies out there are centralized where it's controlled and owned by a single entity where I started with were one of those entities is one coin the only cryptocurrency present at the summit what we have shown it for the last one or half year we have been up and running we had taken in about 2.2 million people and this product we have created is for the mass of people so it fits my my mother that even can't put on a TV but I think she can use this product also one coin has succeeded really good because we are already in about 200 different countries and we are designed for the mass market like the ordinary people so for example if some billionaire would like to come and participate in one going like with with the money in front so we are not interested in in the billionaires like Bitcoin one coin has come under intense scrutiny however particularly online with some describing it as a get-rich-quick scheme serving those at the top it may look like pyramids selling but this is actually helping so many people to improve the quality of life if get is giving people an income people who invested just a small amount of money it's regulated by auditors every month and we believe that this is going to be the new reserve currency of the future we have put in a kic that means that you know your customer service so at the moment the company know every customer that owns come poins in a company every transaction that will be made in the company we know we can provide government's with all transactions we can provide with it where money comes from et cetera all the transactions we don't want to be anonymous we we want to do things correctly and we don't want to be any anything involved of like in legal transactions for like buying drugs or weapons or like terrorism's and and therefore like one coin is really really keen on doing the things more regulated way and setting a new like trend of cryptocurrencies cautiousness distrust and infighting in the world of crypto currencies is not uncommon the challenges of growing such a new concept in a traditionalist environment are immense with thousands of crypto currencies competing on a daily basis but crucially the industry is almost completely unregulated well there's two school of thoughts on that there is the people with very libertarian views who absolutely insist that it should remain self regulated and regulated by the people I like that view and I think that there's a place for that view but I think that the reality of it is that they will and has to be some regulation around it so we can all see the transaction what is happening so we don't need a third part to verify that this money has left from your account came to me the blockchain is using it or like verifying it then we can we can all see it it's like everybody can see it where the transaction have been made the question of regulation coupled with issues pertaining to transparency is only partly concerning for Islamic finance professionals however their main worries center around usability and the role crypto currencies will play in the long term my real concern is that it is has become another tool of speculations like the wit coin history tells us during the last few years the road towards cryptocurrency has been very bumpy and the value kept changing so much that it is not worth considering as a currency only as a special bond for me the most important thing is trade and facilitating trade through the medium of exchange and a store value a current new currency from an Islamic perspective needs to fulfill that function but the linkage to the real economy into the real business of trade has to be there the legal implications are also of similar concern crypto currencies operate without boundaries via the World Wide Web but the chances of infringing laws that govern countries across the globe carries plenty of risk u.s. is a good example the federal government hasn't come out with anything but you have several states already who have come out with their own individual licensing requirements or regulatory requirements for crypto currencies I think it will progress to the point where the federal government in the u.s. does say something across the board in Europe we have almost the same laws but we have a different legal opinion for Germany we have for Scandinavia example also that we have now fully licensed in Vietnam we have in Cambodia we will have been the Thailand so we need to arrange for example in Asia we need for range for every country I think it will progress globally where there'll be an overall body whether it's the World Bank or the UN or the IMF I mean our new regulatory body bill there'll be one that steps up and and we'll monitor that unlike traditional currencies like the US dollar or pound anyone cryptocurrency has a finite number of coins in existence and isn't measured against other currencies instead they're valued through supply and demand particularly from goods and services I would say that cryptocurrencies used mostly on the Internet of course and the gaming industry for example when people are playing online so they love to have cryptocurrencies as a payment method for example 100 different countries they are players and they can use the same currency but cryptocurrency right now is a dwarf amongst a lot of users is causing instability issues leading to extremely volatile rate fluctuations especially when exchanging to other currencies so what's the alternative I think that in the future we'll see a situation similar to how the IMF works which is your crypto currency would be tied to a basket of currencies like the the yen and the dollar and and this way if you have a basket of you know 10 or 15 currencies your movements will be much much smaller and more controllable and give you the stability that you need the volatility they exist because the authorities and the government's have not made up their mind and that may reduce government's make different policies and so it drives the whole industry to like an unregulated world an unregulated world there will be always hypes as the summit winds down the overriding feeling is that cryptocurrency is still young but refreshingly new in a system where bank accounts aren't accessible for everyone it's security the blockchain technology is surprisingly resilient and transparent transactions are there for all to see then we have the social media for example Facebook when it started nobody could understand it it would be such an explosion of the word-of-mouth how Facebook grown and I think the same situation is with cryptocurrency today I don't think we will have regular money like we have today I think we will have digital money absolutely so I think what we have started will put a new standard on the money but for all the excitement and optimism over its potential chaotic volatility in the cryptocurrency market is frightening off merchants and a lack of regulation is testing the boundaries of trust for Islamic finance it may help to loosen the chains of mainstream banking but scholars will need to be convinced if it becomes a stable currency not fluctuating then I have open mind about it that it might be able to to pose as one of the ethical ways of doing the investment in finance like the crowdfunding I would say two things one is not more research needs to be done to understand it thoroughly secondly it only for me becomes something of interest if you like in a wider sense if it becomes something that can be used when you go shopping when you go and buy goods and services by the end of the day the aim is that we have some recommendations coming from the experts of a way forward in terms of Sharia compliancy of cryptocurrency and what the next step is so I'm really excited about that to see what happens next cryptocurrency is still in a state of growth and doesn't look like it'll slow anytime soon but ultimately it'll be up to the financial world to decide whether to work with it or against it you

12 thoughts on “Cryptocurrency: The Digital Coin (DOCUMENTARY)”

  1. A universal currency is the solution!!! It is unstable because is hard to keep up with so many different currencies. Just like the bubble sorting algorithm works… is either left or right? If is left eliminate right and divide left until i find what i want. Make it universal. The universe has so much available space to used.

  2. Please, if someone has a big heart an donate me some bitcoins need that for dental implant
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  3. Platin coin have very strong Technology PLC will be the leader of all digital curriencies.Any one can join PLC group.

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