Cryptocurrency Infused Islamic Microfinance Fund Launches in Central Java



Emerging Markets

This week the firm Blossom Finance announced the open enrollment for an Islamic microfinance fund that will accept multiple cryptocurrencies such as BCH, ETH, and BTC. Investors will focus on socially responsible opportunities, and receive profit sharing from Blossom’s network of microfinance partners in the province of Central Java, Indonesia through a partnership with the PBMT Ventura.

Also read: Five Reasons Why Bitcoin Cash is About to Win Big

Cryptocurrencies, Microfinance, and Central Java

News.Bitcoin.com recently spoke with Matthew Martin, the CEO of Blossom Finance about the launch of Blossom’s new cryptocurrency infused microfinance fund. Blossom enables international investors a commercial return on microfinance institutions that are aimed at reducing poverty. The company partners with ‘BMT’ (Baital Mal wat Tamwil) model institutions that focus on solving social issues and creating self-sustaining businesses. Now Blossom is partnered with PBMT Ventura, an Indonesian Islamic microfinance firm, and plans to publicly launch a cryptocurrency microfinance fund.

Cryptocurrency Infused Islamic Microfinance Fund Launches in Central Java
Blossom CEO Matthew Martin and Managing Director of PBMT Ventura Jamil Abbas pose with members of BMT Al Huda’s management and staff after a meeting in Wonosobo, Central Java, Indonesia.

The funds raised will be utilized to bolster micro-businesses and traditional market sellers to meet the increased demand during the upcoming Ramadan holiday, Blossom details. In order to participate, investors will have the option to invest with Bitcoin Core (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) via Blossom’s US Delaware based fund; the fund will also accept USD investments.

“We’ve spent the last few years developing a network and making key partnerships in Indonesia. Our partnership with PBMT — which is a fully licensed venture capital company in Indonesia — allows us to help some of the best microfinance institutions in the world,” Martin explains to news.Bitcoin.com.

We’re truly inspired by the work these teams are doing in Central Java, and we’re thrilled to open up the fund to public investment.

Cryptocurrency Infused Islamic Microfinance Fund Launches in Central Java
The BMT Tamzis team poses in their “batik” uniforms after a meeting with Blossom Finance in Wonosobo, Central Java, Indonesia.

Gradually Putting the Loan Sharks Out of Business

Blossom’s fund will focus exclusively on microfinance solutions that adhere to the BMT model. BMT branches offer commercial financing, community-based savings, and encourage the growth of local businesses. Financial products BMTs provide traditionally serve the ‘under-banked’ citizens and businesses that fall below conventional bank thresholds, Blossom details.

“We’re huge proponents of the BMT model in Indonesia. When you go around with one of these BMT agents into the community, and you see the relationship between the agent and the cooperative members, you begin to understand that this model is something special – it’s a totally different model of banking unlike anything in the conventional banking realm” said Martin. “The loan sharks hate this model because it’s gradually putting them out of business.”

Cryptocurrency Infused Islamic Microfinance Fund Launches in Central Java
A traditional morning market seller and BMT member in Sukorejo, Indonesia. Blossom’s fund invests in many market sellers like this via the BMT network, which provides financial services to Indonesia’s working class.

Blossom’s Recent Islamic Finance Bitcoin Research Paper Bolsters the Microfinance Fund That Aims to Help Traditional Market Sellers

The news follows Blossom’s in-depth research analysis that shows bitcoin and other cryptocurrencies meet the Islamic definition of money under Shariah rules and that it’s permissible for Muslims to use. Because of this, the firm’s fund will be a first of its kind that enables BTC, BCH, and ETH acceptance for those who adhere to the Islamic finance doctrines. “What we do is truly global by nature, so naturally it makes sense to leverage the world’s first truly global currencies,” Martin emphasizes to news.Bitcoin.com. “We use bitcoin and ethereum to transfer money globally more cheaply and quickly than the banks can do it — And we get much more competitive exchange rates this way.”

Investing in Blossom’s microfinance fund helps traditional market sellers to earn an honest living by supplying food and necessities for daily life — Muslims should focus on productive, real-world economic activity – not merely playing with exchange rates and fluctuation.

What do you think about Blossom’s Islamic microfinance solution that accepts bitcoin and ethereum? Let us know in the comments below.


Images via Matthew Martin, and Blossom. 


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