The Consequence of Credit Creation Related to Lending

In this episode, Saifdean talks to Safdar Alam, CEO of investment firm Maydan Capital, about Islamic finance. Safdar starts by describing the basic principles of Islamic finance and the ethical justification for Islam’s prohibition on lending with interest. He and Saifedean then talk about how Islamic finance works in practice today; how it is mimicking the mainstream financial system; and the ways in which bitcoin might provide an ethical alternative to common practices often considered haram. In the Q&A Safdar answers questions about the Islamic definition of “speculation” and how this differs from “gambling”.