It appears Bitcoin companies could get huge impetus from the fact that Bitcoin is Halal i.e. approved by Islamic law. The first instance of any such determination came from Matthew Joseph Martin of Blossom, a 30-year-old developer who has previously worked with finance technology start-ups Boku and Xoom.
Martin came up with a Bitcoin-based service for the Muslim market by providing micro-financing in Indonesia. He sees huge potential in Islamic countries that have strict rules regarding Halal money as Islamic law prohibits Muslims from taking interest-bearing loans, which gives them limited options for moving funds.
He believes that as Bitcoin could be a form of micro-financing that is approved or “Halal” in Islam since the cryptocurrency doesn’t incur interest. Nonetheless, as he says that he reached to this understanding after running a small business on the side where he faced cash flow issue, it was indeed a tough time for him.
However, he received a solution when some of his non-Muslim advisors suggested to just get a loan. As Martin knew interest-based loans are not allowed in Islam, he started researching Sharia finance. He admits that after understanding what Islam advocates as a mode of financing, he started researching what exists in the market today.
Huge Scope in Indonesia
Martin says that he found that there are over 220 million Muslims in Indonesia; mostly without any access to any kind of micro-financing that is approved under Islam. Therefore, according to him only 8% of financial products in Indonesia are compliant with the religion’s laws and that a micro-lending service based on Bitcoin and profit-sharing could be a workaround.
It appears crystal clear that this unserved need for him is a huge problem that needs to be solved. Given the fact that Martin has background in financial technology doing payments and remittance, he believes that the experience building similar products was really an asset to help solve the problem.
Nonetheless, over the months, Martin has developed the right network and paraphernalia to offer the services what he calls ‘Blossom’. Launched in late 2014, ‘Blossom’ works by collecting money from several individual investors then investing it in a profit-sharing model. This also provides opportunity for investors to make money.
He says that investors make money by collecting a share of the profit from the businesses that their investment helped to create and grow. He concludes that the cryptocurrency Bitcoin is used by Blossom to move money electronically, allowing for fast, verified, and safe money transfer.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org