Joy Onuorah
Recent research conducted with leading Islamic finance professionals has shown that cryptocurrency and other digital assets are becoming more popular and widely accepted, likewise the interest in Metaverse.
IslamicMarkets.com, a leading platform that provides access to expert knowledge and financial opportunities, conducted the research to support the Global Islamic Finance Forum 2022.
The study discovered nearly two-thirds (63%) of Islamic finance professionals believe the level of adoption of crypto and digital assets in Islamic finance will increase over the next five years, with 16% expecting a dramatic increase.
This goes up to 70% who believe the adoption of the Metaverse in the Islamic finance sector will increase over the next three years, with 20% expecting a dramatic increase in the next evolution of the digital customer experience in Islamic finance.
Many in the Islamic finance sector have typically been doubtful of crypto and digital assets, but the research found that dramatic improvements in regulation have persuaded professionals to take a closer look.
The fact that leading Muslim-majority countries such as the UAE and Saudi Arabia will increasingly become key players in the crypto and digital asset sectors are also helping to dispel scepticism.
The study also discovered that one reason for the adoption of crypto and digital assets in Islamic finance is that there are elements of cryptocurrencies, such as not paying interest in the case of Bitcoin, that appeal to conservative Muslims.
The growing acceptance by more mainstream institutional investors has also persuaded some sceptics, as have improvements in custodial services in the digital and crypto sectors.