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The Islamic financial sector positively assesses the possibilities of cryptocurrencies and metaverses

A new study conducted by the leading experts in the field of Islamic finance shows a growing interest in crypto and digital assets, as well as an increase in interest in metaverses in Muslim countries. The study was conducted On the eve of the Global Islamic Financial Forum 2022 (GIFF2022), which will be held on October 5-6 in Kuala Lumpur.

The event titled “Take the Reins” is organized by the Association of Islamic Banking and Financial Institutions of Malaysia (AIBIM) in partnership with Bank Negara Malaysia (Central Bank of Malaysia) and is aimed at actively discussing the work needed to strengthen the global leadership of Islamic finance.

The study showed that almost two out of three (63%) specialists in Islamic finance predict that the level of adoption of crypto and digital assets in Islamic finance will increase over the next five years, while 16% expect a sharp increase in this share. More than 70% of the forum participants surveyed say that the introduction of metaverses in the Islamic finance sector will increase over the next three years.

Traditionally, the skeptical attitude of Islamic finance specialists towards cryptocurrencies is changing. A significant role in this is played by the initiatives of regulators trying to find a niche for digital finance in traditional financial systems, as well as the fact that financial organizations in the UAE and Saudi Arabia are showing increasing interest in the cryptocurrency market. The growing recognition from large institutional investors is also forcing skeptics to change their attitudes and assessments of the effectiveness of digital finance.

GIFF2022 Chairman Arsalaan Ahmed said,“ Many in the Islamic finance sector have steered clear of cryptocurrencies which, given the recent volatility, has proved a wise move but that may be about to change with growing interest in digital assets and the Metaverse. The role of countries such as the UAE and Saudi Arabia in the crypto and digital asset sector highlights the interest in cryptocurrencies in the Muslim world.”

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