The rejection of sound money (e.g., Bitcoin or gold-backed systems) that is hard to produce, anti-riba, and halal often stems not from ignorance, but from a complex interplay of psychological, social, and systemic forces. Here's a breakdown of the key psychological and behavioural reasons:
Psychological Barriers to Acting on Sound Money Knowledge
1. Cognitive Dissonance
- People may know that fiat money is inflationary or that interest (riba) is exploitative, but accepting this truth threatens their comfort, habits, or identity.
- To reduce discomfort, they rationalise: “Everyone uses banks,” “It’s just how the world works,” or “Crypto is risky.”
2. Status Quo Bias
- Humans are wired to prefer familiar systems—even if flawed—over uncertain alternatives.
- Sound money often requires learning new tools (e.g., wallets, self-custody) and breaking with deeply ingrained norms.
3. Short-Termism
- Many prioritise immediate convenience over long-term ethical or financial resilience.
- Fiat systems offer instant gratification (credit, loans, subsidies), while sound money demands patience and discipline.
4. Learned Helplessness
- After repeated exposure to financial injustice (e.g., inflation, debt traps), people may feel powerless to change the system.
- They disengage, believing alternatives like halal finance or Bitcoin are “too idealistic” or “not for people like me.”
5. Social Proof and Herd Mentality
- If peers, family, or institutions don’t embrace sound money, individuals fear being seen as fringe or foolish.
- This is especially strong in cultures where conformity is tied to trust and belonging.
Specific to Anti-Riba and Halal Finance
6. Misunderstanding of Riba
- Many Muslims conflate riba with “just interest” and assume it’s a technicality, not a moral issue.
- Others believe modern banking has “Islamic alternatives,” without scrutinising whether they truly avoid unjust gain.
7. Fear of Isolation or Inconvenience
- Opting out of riba-based systems can mean losing access to mortgages, business loans, or mainstream financial tools.
- This fear of exclusion—even if temporary—can override ethical convictions.
8. Spiritual Disconnect
- When faith is compartmentalised (e.g., prayer without financial ethics), people may not see money choices as part of their deen.
- Sound money becomes “optional” rather than a moral imperative.
Systemic and Cultural Reinforcement
9. Educational Gaps
- Schools and media rarely teach monetary history, ethical finance, or the harms of inflation and debt.
- Without this foundation, sound money feels abstract or irrelevant.
10. Institutional Pressure
- Governments and banks promote fiat systems aggressively, often labeling alternatives as dangerous or illegal.
- This creates fear, confusion, and stigma around halal or decentralised finance.
