Mufti Faraz Adam is CEO and Head Shariah Advisor of Amanah Advisors.
Web3, DeFi and NFTs are being debated among Sharia scholars around the world, but are we asking the wrong questions and approaching the problem from the wrong angle? It makes more sense to approach all emerging technologies in a sandbox-like way of thinking instead of asking if they are and trying to come to a conclusion from the beginning. Conclusion. A “Shariah Sandbox” of sorts, where there is a live and controlled testing environment for a variety of technologies to assist stakeholders in developing a Shariah-permissive digital infrastructure for the decentralized digital economy. promote this. Shariah has good reason to start with a permissive stance, a positive attitude, and an intention to continually reiterate its alignment with Shariah. A basic Islamic maxim quoted by several classical authorities and juristic schools states:
This should be the starting point for all your experiments with Web3, NFTs and DeFi. Problem areas and experiences should be individually excluded from use cases for these technologies. Experimentation allows the best ideas to thrive in unmanipulated markets with low barriers to entry and come out on top. Experimentation promotes better understanding of Shariah and study of Shariah.
Shariah sandboxes incubate innovative products and emerging technologies and protect them from premature fatwas and views. Similar to regulatory sandboxes, Shariah sandboxes can accommodate all new technological and innovative start-ups that do not explicitly and explicitly contain prohibited elements, but whose nature is unclear. .
This allows companies to avail Sharia Advisory Services and have Sharia Advisors oversee and guide their products before fatwa, view or official Sharia certification, to test their products in real-world environments. The Sharia sandbox can incubate and protect any technology or start-up, giving room to grow and develop to his certified Sharia-compliant product.
Ultimately, it became clear that Sharia adds value to people’s lives and makes them prosperous forever. Its eternal purpose is underpinned by a stable economy in which people receive their needs in this temporary existence. Anything that gives people value as a meaningful contributor to the world and helps them achieve their eternal goals is welcomed by Shariah. Anything that gets in the way of that route is not welcome.