Shariah-obedience is important to Muslims and to anyone who does it Business in the Islamic world. BisMillahCoin is a complete Shariah follower. The product is designed to follow three basic criteria for trading Islamic meaning: 1) there is no interest in issuance BisMillahCoin; 2) profit-loss sharing rewards are part of the project, and 3) have minimal imagination. The Islamic law forbidding interest was, however, not primarily based on economic theory divine sheer authority, which considers the interest charge as an act of wrongdoing. Early Muslim scholars regarded money as a medium of exchange, a standard of value and A unit of account, however, rejects its functionality as a quality store. The law of interest was banned because it was considered an act of ingratitude and unjust. Since the money was not made to search for itself but for other content. Recent Muslim scholars have emphasized their interpretation of the law over the lack of theory of interest. They resisted the argument that interest is the rewards of preservation are an inevitable consequence of productivity and differentiation of capital today between the value of capital goods and their value for a year.
The basic arguments are summarized below:
Interest and savings: The argument that interest is a reward for preservation, to Muslim scholars responding to such payments reasonable if savings are used to generate additional capital and wealth. According to them, my work should not be attributed to anyone who is negligent return. Interest and the productivity of capital: The argument is as justified as that interest capital productivity, they respond that although marginal productivity of capital. The interest rate may enter as a factor in determining the rate of interest, there is no necessary correlation with capital productivity. Their logic, interest, money is given, not capital, capital has to be paid regardless of productivity.
To distinguish between the use of money as a charge and the difference between interest investing in capital, Muslim scholars think that treating it is a flaw in modern theory interest as the root of the price, or a return for it. Money, they argue, is not capital, It is only 'potential capital' that requires entrepreneurial services transform the possibilities into reality; There is no relationship with the lender To convert money into capital and use it productively. Interest as time value of capital: The argument that interest is raised as an inevitable one of the difference between the value of capital goods and their quality in a year. Therefore, they respond that it not only explains its inevitability but also its accuracy. Even there is a difference in the quality of the products based on the choice of time this year and next year, the Muslim scholars argue, it seems more reasonable to allow the latter the economic status of the year to determine the limit of rewards.
Muslim scholars think that when a person gives out, the funds are used to create either a debt or an asset. There is no justifiable reason for a debt or an asset in the first case why lenders should get a return? Moreover, there is no justification from the point of view of the economy running smoothly, or from any tenable scheme of social justice. Regardless of the state, unconditional commitment should be tried the use borrowed money. If this money is used to create additional capital assets, the question is why the lender should be entitled to only a small fraction (represented by the interest rate) the exchange value of utilities made with non-loan money. The trial claimed that should be remunerated to the extent his financial capital is involved in creating increasing wealth. The purpose of eliminating interest from the economic system is to promote economically equitable, according to Islamic principles, fair and morally sound transactions. This harmonious trade creates strong economic incentives, and brings cooperation and co-participation at all levels, hoarding practices are prohibited the Quran also applies to money. Islam wants to make sure that someone's money is used productively for themselves and the community.
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