Building Islamic Cryptocurrency Unfeasible For Now: Expert
The establishment of a joint cryptocurrency between Islamic countries is also out of the question for now, Peyman Molavi, former head of Iranian Economists Association (IEA), told IQNA on Tuesday.
Some 6,000 cryptocurrencies exist in the world now and their combine market cap is around $1,600 billion while a company like Apple alone is worth $3,000. This example says a lot about this market, he added.
Cryptocurrencies are just a tool and fulfill part of the demands. Every country can have its own cryptocurrency but as far as the domination of dollar persists, one cannot focus on creating an Islamic cryptocurrency, noted the expert.
Molavi also noted that establishment of a common currency between Islamic countries is impossible.
“Investment cannot go along with ideology. For instance, what has been the achievements of ECO [Economic Cooperation Organization] in the past years? Heads of the states sometimes hold a session and we see no result.”
“Some say that Islamic countries are seeking to decrease dollar domination but I do not believe in this. States such as the UAE, Saudi Arabia, Kuwait, and Oman are trading with dollar and the currency has a major role in their economy. Of course, these countries are not in love with dollar but they do trade with that because of their national interests. If for example Yuan find increased power in the coming years, it is not unexpected that these countries set aside dollar. This is a rational choice based on the national interests.”
