Malaysia and Korea will develop a halal blockchain

South Korean blockchain technology company IncuBlock has signed a memorandum of understanding with the Malaysian Government Advisory Council to develop a sharia-compliant blockchain.

Blockchain technology has previously been used to track halal-standard food products produced by the British company HALAL TRAIL, which, using blockchain technology, allowed tracking the movement of farm products from farm to consumer.

The Malaysian Government Advisory Council, together with IncuBlock and its international partner, Global Cornerstone Group, will develop a blockchain platform and decentralized application that the Islamic Shariah Council will consider halal-acceptable.

Kwon Wonseon, CEO of IncuBlok, said that the company is happy to apply its experience and knowledge to the development of an Islamic blockchain platform.

It is impossible to say for sure whether there is a place for cryptocurrency in Islamic banking activity, and whether Bitcoin (BTC) can be considered to comply with the halal standard, since Bitcoin (BTC) is not directly defined as a currency in accordance with Islam. Meanwhile, in April, a report from a fintech startup in Indonesia was published that Bitcoin was at least “permissible” under Sharia law. The report stated that due to its widespread acceptance, lack of control by a central authority and dependence on the blockchain, Bitcoin could prove more secure than existing financial systems. 

Chairman of the State Advisory Council of Malaysia Dato' Hassan Binmad hopes that the signing of the Memorandum and cooperation "will lead to the development of a blockchain that will be managed by the Malaysian government and that will be used throughout the Islamic community."

According to https://cointelegraph.com