The Financial Reality in South Asia
South Asia is home to over 600 million Muslims, primarily in India, Pakistan, Bangladesh, Nepal, and Sri Lanka. Despite being one of the fastest-growing economic regions, financial inclusion remains limited. Approximately 70% of Muslims in India lack bank accounts, according to the World Bank. Reasons include poverty, lack of infrastructure, and fear of riba (usury), which is prohibited in Islam. Traditional banks alienate millions seeking Sharia-compliant solutions.
Traditional Islamic Finance: Elitist and Slow
Global Islamic finance stands at ~$4 trillion, but it is concentrated in the Gulf and Malaysia. In South Asia, access to products like murabaha and ijara is limited to the wealthy and large institutions. Lengthy paperwork and high costs make them unsuitable for the poor and low-income earners. While 1.9 billion Muslims worldwide seek financial justice, current services remain elitist and slow.
Why Decentralization is the Solution?
Blockchain technology offers open, intermediary-free access. Unlike banks imposing hidden terms and fees, smart contracts execute agreements transparently. Islamic decentralized finance (DeFi) integrates Sharia principles: the seller owns the asset (bay'), payments in a stablecoin like USDC to avoid volatility, no riba or gharar. Surplus is returned to the buyer, and a 3-day grace period for late payments protects the poor from unjust debt.
Qist: A Bridge Between Islamic Finance and DeFi
Qist is the first Islamic decentralized finance protocol on Base, built on clear principles: the seller owns the asset, payment in USDC, no riba/gharar, surplus returned, 3-day grace period, only 2% fee. The contract is open and verified on BaseScan, ensuring full transparency. With this mechanism, any Muslim in South Asia can access fair financing without intermediaries, needing only a smartphone and internet connection.
How Qist Implements This
For example: a trader in Dhaka wants to buy goods. Through Qist, he pays USDC to purchase the asset directly (bay'). No interest, no gharar, the contract guarantees both parties' rights. If he delays payment, he has 3 days grace without penalty. Any surplus is returned to him. This transforms him from a financially excluded person to a partner in the economy. Thousands of transactions can occur daily, unlocking the latent wealth in South Asia.
