Why You Shouldn't Take Out Loans in a Fiat System

In this interview with the Practical Islamic Finance podcast, Saifedean discusses Bitcoin from an Islamic perspective, and makes the case for why it is more compatible with Islamic Sharia law than government money. Whereas the creation of government money happens through the creation of interest-bearing debt which is forbidden in Islam, the creation of bitcoin is no different than the creation of a market commodity, with a competitive market for its production. Bitcoin's decentralization makes it uniquely different from all other digital currencies because it makes it a free market commodity, and not a tool that allows its issuer control over its users.

Resources

• Visit saifedean.com/arabic to download The Bitcoin Standard and Arabic language bitcoin materials for free.
• Podcast episode The Problem with Interest with Tarek El Diwany for discussion of riba and decentralization in publishing the Koran.
• Tarek El Diwany’s book The Problem with Interest.
• Podcast episode Islamic Finance and Bitcoin with Safdar Alam for discussion of how modern Islamic Finance “mimics” the fiat system, and is in need for reform.
• Safdar Alam’s Twitter thread on why Islamic banking needs to reform.
• Safdar Alam’s textbook Islamic Banking in Practice.
• Podcast episode Bitcoin: The Most Islamic Form of Money? with Harris Irfan for discussion of why bitcoin could be the most sharia-compliant form of money.
• Harris Irfan’s book Heaven’s Bankers for an exportation of the hidden world of modern Islamic Finance, and blog drawing on its contents.
• Harris Irfan’s article Cryptocurrency and the Future of the Islamic Economy.
• The Blocksize War by Jonathan Bier for discussion of failed attempts to change the consensus parameters of bitcoin.
• Keynes: The Man by Murray Rothbard for discussion of the lifestyle and motivations of John Maynard Keynes.
• See chapter “Bitcoin is Halal” of Bitcoin is Venice for discussion of how bitcoin dramatically reduces the need for debt and encourages a financial system strongly aligned to Islamic principles. Also available as standalone article.
• The Practical Islamic Finance Podcast.
• Saifedean’s first book, The Bitcoin Standard available in 20 languages.
• Saifedean’s second book, The Fiat Standard available in English, Turkish, Spanish and French.
• All of Saifedean's podcast episodes are available at saifedean.com/podcast
• Saifedean on Twitter.