A strategy to penetrate the $3 trillion Islamic market.
Marhaba (MRHB), a Muslim-centered DeFi platform, is launching the world’s first Sharia-backed NFTs certification.
The system involves a process where NFTs projects will be submitted to a Sharia administrative board. This panel will review the artwork’s compliance with Sharia Modesty and ethical code. Halal NFTs receive a Blockchain minted certificate curated by Sharia Experts LTD, an Islamic advisory platform for web3 projects.
Mohammed Naquib, the founder of Marhaba, explained how the process works. According to the founder, a board scrutinizes NFTs in audio, video, or image formats for nudity, hate speech, racism, and other vices. Those considered free of these get the Halal seal of approval, an NFT certificate hosted on SouqNFT, Marhaba’s marketplace. The DeFi platform hopes this strategy would provide an inroad into the crypto-resistant Islamic economy.
Mining the Islamic Economy’s Resources
Per Qardus, a UK-based Muslim economic network, the Islamic market is a huge sector worth over $2.7 trillion, catering to 1 billion people. However, most of its liquidity is unable to flow into the crypto marketplace because of halal compliance issues.
The Sharia law regulates all Islamic interactions, including economic transactions. Any transaction that complies with the Muslim law, Sharia, is Halal. Every business transaction or product must be Halal, i.e. Sharia law compliant, to pass muster on many Islamic markets.
Unfortunately, cryptocurrency has had a hard time gaining acceptance so far. In fact, eminent figures in the Islamic community have expressed concerns and even issued outright warnings against the digital currency.
The legitimacy of cryptos like Bitcoin has long been a subject of debate. Dissidents claim it could be used for immoral activities like gambling and drinking; therefore, it is not Sharia-Compliant. In fact, some consider crypto investments to be a form of gambling.
This new development, the Halal NFT certificate, is a strategy to penetrate the ambivalent faith-based economy. Marhaba (MRHB) hopes that the halal seal of approval will encourage Muslim businesses and consumers to venture into crypto.
First Halal NFT Compliant Confirmed
So far, the founder and CEO of Marhaba confirmed that one crypto network has received the halal compliance certificate. He identified the recipient as Cache gold, a Singapore-based gold crypto platform.
Muhammed is confident that Cache’s gold listing will be the first of many in a potentially promising market.
Challenges
The move is not without its detractors of course. For many, crypto’s strongest tenet is its decentralization. Subjecting crypto protocols to audit by a governance board like the Sharia might be limiting, especially considering the intentional inclusiveness ubiquitous to the crypto space.
Regardless, the MRHB founder insists the organization has got these concerns covered, and will ensure crypto’s “decentralized aspects are not compromised.”