A Muslim-centered scrupulous decentralized finance platform, Marhaba DeFi Network (MRHB), has proposed Sharia-compliant NFTs for the Muslim Community. If it becomes a reality, it is going to be a first-of-its-kind endeavor for MRHB to launch a Sharia-certified NFT.
As per the blueprints of MRHB, freshly minted NFTs will be sent to a Sharia governance board which will scrutinize them in terms of moral principles and the Islamic law (whether it is halal or haram). Halal: Any act that is allowed by the Islamic book is called Halal. Haram: Any act that is forbidden (taboo) is called Haram.
The Founder and Chief Executive Officer of MRHB, Naquib Mohammed, told BelnCrypto that the proposed NFTs (images, videos, or audios) are to be reviewed from different angles such as bigotry, loathe racism, and nudism.
After receiving a green signal, Sharia Experts Ltd accredits a certificate on Blockchain 3.0. The first entity that received such a certification from Sharia Experts Ltd is a Singaporean entity known as ‘Cache Gold’. He further added that the Muslim community was in a dire need of this step at a time when certification forgeries have become predominant. He praised NFTs for their traits of irreplaceability and non-interchangeability as these attributes make them an ideal technology for immutable certificates.
The Islamic Finance Sector With A Capitalization of Almost 3 Trillion Dollars Strongly Resists Bitcoin
Sharia compliance is the greatest need of every Muslim market nowadays. But a problem that is more crucial than it is that the legitimacy of cryptocurrencies is still controversial. A majority of the Islamic religious scholars have given Fatwa (verdict) against it regarding it as Haram. Due to the strong opposition from clerics, the Muslim community stays away from crypto trading as well.
There are also some question marks over a dearth of a central authority and the way the digital currencies have hamstrung governments and central banks. Last year, a prominent Indonesian scholar warned followers of investing in crypto and declared it equivalent to gambling.
Marhaba, which uses the SouqNFT platform to host its NFTs, is trying to eliminate these concerns by launching its Sharia compliance NFT. If somehow it manages to turn the tide, it will become in a position to tap this $3 trillion market and 1 billion Muslims of the world.
Is Sharia Compliance A Threat to DeFi Autonomy?
At the moment, Marhaba is a decentralized entity but the Sharia governance board may not let it remain this way. The status of the firm may be changed to manipulate the rules to a limited extent. A reason behind it is that Marhaba wants to target Muslim clients but it is not willing to lose its other clients too. This objective of Marhaba was uncovered by Naquib Mohammed as he said that its NFTs are acceptable for non-Muslims as well. It wants to build an ecosystem of DeFi – Decentralized Finance products and services.
Keep in mind that the firm is following in its footsteps as in the past it had launched its halal wallet for cryptocurrencies named Sahal which received a very good response.
