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DIGITAL ECONOMY & TECHNOLOGY

Ethical Aspects Relating to Cyberspace: Web Ideologies

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Active research on virtual communication has been conducted relatively recently – since the early 1990s – and is becoming increasingly intense. The growing interest of representatives from different humanitarian subjects (philosophers, sociologists, psychologists, culturologists, linguists) in this topic is explained not so much by the unprecedented dynamics of the development of the subject matter of research, but rather by the fundamental role that communication plays in the 2000s.

The current telecommunication technologies and, first of all, the global IT network Internet and the related cyberspace, are one of the most important factors in the development of the world community, as it has a decisive impact on the public, political, economic and socio-cultural spheres. There is therefore a clear need for a comprehensive philosophical understanding of the consequences of global computerisation and today’s society, which makes it possible to synthesise the varied data of applied sciences.

Since virtual communication is a relatively new cultural phenomenon, no comprehensible, distinct and effective system of moral regulation has yet emerged in this area. Furthermore, virtual communication has such characteristics that it can be regarded as the embodiment of a libertarian, even anarchist or apparently anarchist ideal, so that third parties are allowed to express themselves in order to control those who do so on the part of the establishment.

Virtual communication offers people unprecedented opportunities for fulfilling personal freedom, challenging its moral nature, which gives rise to many ethical problems of both a theoretical and applied nature that generally require an adequate solution.

The relevance of the problem is therefore determined, on the one hand, by the scientific and theoretical need for a holistic and systematic study of the ethical aspects of virtual communication, and, on the other hand, by the practical social need to bridge a regulatory gap in this area.

Research is mainly focused on the individuals’ activity and behaviours during computer-mediated communication, but more so directed by the web in its essence. That is, the set of rules and principles governing this communication, i.e. the morality and/or immorality of cyberspace.

There is a need for moral and philosophical reflection and an objective assessment of the virtual communication processes and their impact on society. To achieve this goal, the following tasks need to be addressed:

to characterize the specificities of virtual communication;

– to consider the key ideas of the “library” available;

– to analyse the degree of influence of these ideas on the creation of an ethos specific to cyberspace;

– to determine the status of morality in the system of normative regulators of virtual communication;

– to identify the fundamental moral principles that regulate behaviour in this sphere;

– to describe and analyse the rules that are or should be at the basis of codes of ethics in cyberspace;

– to identify the specificities of netiquette (the civilised behaviour we should have when communicating), and determine what role citizens themselves should play in their own desirable self-regulation on the Internet;

– to consider and analyse the main ethical and philosophical dilemmas generated by the emergence of the new information and communication technologies.

Hence de-anarchisation is subject to the solution of these problems.

The ethics of virtual communication or – as is commonly called – the ethics of the cybernetic network, as a field of practical philosophy is just beginning to emerge. In spite of the fact that a fairly large number of publications on the problems of human interaction with global IT networks have appeared in recent years, especially in English-speaking countries, only a small amount of these works is dedicated to the ethical aspects of such interaction, since in those countries the efforts are unscrupulously underpinned by profit and far outweigh the production of essays devoted to human and moral values.

The ethics of virtual communication is very often regarded as a continuation and development of the academic sphere of computer ethics, which is a field of applied ethics that studies the moral problems created by information technologies.

This approach seems entirely legitimate if we pay primary attention to the indirect nature of virtual interaction.

At the same time, a number of researchers believe that all computer-mediated actions, without exception, have an information nature. This means, in one way or another, having a significant impact on the infosphere, the consequences of which are only subject to moral evaluation. As a result, information becomes a completely independent subject of moral relations, and hence the ethics of computers and virtual communication acquires a status that is philosophically more significant than the ethics of information tout court, which has been developed until “recently”.

According to another viewpoint, the ethics of virtual communication should be considered one of the varieties of professional ethics, significantly closer to that of librarians and communicators (media codes of ethics, journalists’ charters, etc.). This approach is based on the analysis of the most common and socially relevant types of activities by Internet users, and hence, although with some reservations, they become representatives of different professional groups that have not only the right to exist, but also to put themselves on an equal footing with similar existing national or international institutions.

There are two main strategies to justify the web ethics: the Anglophone (mainly in the United States of America) and the German-speaking one. The Anglophone authors focus on the cultural and axiological aspects of web ethics, considering the moral problems of virtual communication within the framework of normative ethics and, as a rule, on the basis of the application of classical ethical concepts to them (primarily deontology, utilitarianism, economism, business practices). The German-speaking authors, instead, focus their attention on the communication aspects of web ethics and on a more theoretically significant but too abstract issue – whether ethics, in general, and web ethics, in particular, can be substantiated – and conduct research primarily on the basis of discourse ethics.

The methodological basis of the study is a synthetic interdisciplinary approach, as well as a comprehensive and systematic analysis of the phenomenon being studied. The proposed methodology combines the analysis of value, structural-functional and historical-genetic criteria and judgements with the main ideas of the anthropological and hermeneutic schools, as well as with the achievements of scientific disciplines such as political science, sociology, cultural studies, psychology and communication theory.

The novelty of these results consists:

– in identifying the specificities of the ethical discipline of virtual communication;

– in the thematisation and systematisation of the main ethical regulators of virtual communication;

– in the theoretical validity of the moral norms, rules and principles governing behaviours in this field.

The theoretical significance of this lies in the systematic presentation of the virtual communication processes from an ethical viewpoint, which not only makes it possible to explore the practice of cyberspace, but also serves as a prerequisite for the creation of effective mechanisms to ensure the implementation of common morals with relevant norms, rules and principles.

The results obtained can be used for further research on the problem of the influence of virtual communication on society and personality within the framework of theoretical disciplines such as ethics, pedagogy, sociology and psychology. The methodology for

 analysing communication processes can find wide application in modern mass communication theory and practice.

In most cases, virtual communication is characterised by distinctive features such as mediation, interactivity, distance and global intercultural nature. The participants’ anonymity provides ample opportunities for the construction of a personal identity as there is no status hierarchy, while their extra-institutionality, the non-development and uncertainty of social rules (including legal and moral ones), can lead to marginalisation and mockery of communication processes, which are sectarianly concentrated in a restricted group of Internet users who gradually lose contact with earthly reality.

The aforementioned characteristics, together with the imperfection of modern IT regulations, considerably limit the possibilities of organisational and legal regulation of this area, which enables participants in virtual communication to consider it “the last territory of freedom”, a new res nullius, in which to take refuge from State control. Consequently, the above mentioned voluntary moral self-regulation, which is largely spontaneous and performs compensatory functions, begins to play a priority role in the normative regulation of virtual communication. Or rather, law-makers follow their example to produce rules. Or the lawmakers themselves act as Internet users so that they can better understand the environment by entering it with anonymous roles. (1. continued)


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DIGITAL ECONOMY & TECHNOLOGY

Zakat on Stocks and Shares: A Modern Dilemma Solved

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In today’s fast-paced world, where the buzz of the stock market is as familiar as morning coffee, a timeless tradition meets the modern age: the practice of paying Zakat on stocks and shares. This intersection of faith and finance might seem like a modern dilemma, but “Zakat on Stocks and Shares: A Modern Dilemma Solved” can be achieved with a blend of ancient wisdom and contemporary understanding. Let’s dive into the world of stocks, shares, and spiritual duty, and discover how this blend enriches both our wallets and our souls.

Understanding Zakat in the Digital Age

Zakat, one of the Five Pillars of Islam, is a form of almsgiving to the less fortunate, calculated as a percentage of one’s wealth. Traditionally, it applied to tangible assets like gold, silver, and livestock. But what happens when your wealth is tied up in the intangible world of the stock market?

Imagine you’re in a vast, bustling city where skyscrapers are filled with traders, analysts, and investors, all meticulously tracking the rise and fall of stocks. In this modern jungle, your investments grow, sometimes unpredictably, reflecting not just your financial acumen but also the global economic heartbeat. Here lies our modern dilemma: how do we apply the ancient practice of Zakat to this digital-age wealth?

Calculating Zakat on Stocks and Shares

The key to solving this puzzle lies in understanding the nature of your investment. Are your stocks purely for capital gain, or do they yield dividends from companies that deal in tangible goods and services? The answer guides how Zakat is calculated on these modern assets.

  1. For Long-Term Investment: If you hold stocks as a long-term investment, Zakat is due on their market value. Think of it as if you’re a farmer with fields (stocks) that grow crops (dividends). Just as a farmer would calculate Zakat on the harvest, you calculate Zakat on the annual value of your stocks.
  2. For Active Trading: If you’re an active trader, your stocks are akin to the goods in a merchant’s caravan, constantly moving and changing. Here, Zakat is calculated based on the total value of your trading portfolio at the end of the lunar year.

Stories from the Stock Market

Let’s take a moment to walk in the shoes of Aisha, a dedicated software engineer by day and a savvy investor by night. Aisha’s portfolio is a mix of long-term tech stocks and short-term trades in renewable energy. When the time comes to calculate her Zakat, she reflects on the nature of each investment. Her tech stocks, akin to a golden wheat field, are valued at their current market price, while her active trades are tallied up like a merchant’s inventory at year-end. This careful consideration ensures Aisha fulfills her spiritual obligations without overlooking her modern investments.

Similarly, Omar, a retired teacher with a passion for philanthropy, uses his dividends from healthcare stocks to support various charities. By calculating the Zakat on his shares, Omar turns his investments into a powerful tool for social good, illustrating how ancient practices can meet modern philanthropy.

Embracing Modern Dilemmas with Ancient Wisdom

The dilemma of paying Zakat on stocks and shares illustrates a broader lesson: that our faith and traditions are not static, but rather, they evolve with us. As we navigate the complexities of the modern financial world, we’re reminded of the adaptability and enduring relevance of Islamic teachings.

Zakat on stocks and shares: a modern dilemma solved, not just through numbers and calculations, but through the stories of individuals who bridge the gap between their faith and their finances. In doing so, they enrich not only their own lives but also the lives of those around them, weaving a tapestry of spiritual and material prosperity that spans the ages.

In conclusion, the practice of paying Zakat on stocks and shares: a modern dilemma solved, offers a fascinating glimpse into how timeless traditions adapt to contemporary realities. It’s a journey that not only addresses a modern financial challenge but also deepens our connection to our faith, our community, and the wider world. As we move forward, let’s carry this wisdom in our hearts and portfolios, ensuring that our investments reflect our values and contribute to a better world for all.


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DIGITAL ECONOMY & TECHNOLOGY

The African Village Mining Bitcoin

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By Ian Birrell

Bondo is a scattered cluster of villages in a remote region of Malawi near the border with Mozambique. It sits in the foothills of Mount Mulanje, where residents rely on their feet for transport and a few crops to feed their families. Yet unlike in most places in this impoverished country, when night descends they can now switch on lights, stoves and televisions in their homes.

For electricity has arrived in Bondo. Three turbines were installed in a micro-hydro scheme exploiting the fertile region’s rainfall. And the impact has been life-changing for the 1,800 homes so far connected to a mini-grid. Children can study after dark, so now have a better chance of passing the exams for secondary school rather than having to leave aged 11. Drugs and food can be stored in fridges, so villagers do not have to make the 12-mile trek to the hospital and can produce batches of food or drinks to sell at market. Cooking the evening meal is three times quicker — and far less destructive to the environment — without the need to collect firewood.

One group of women giggled when I asked if they had televisions and watched football in their homes. “Before, our husbands would say they were going off to watch football when they were really walking out with other women. Now they can no long claim they are going off for football,” Bertha told me. The senior chief told me they had never dreamed of having energy supplied to the villages, with a dozen maize mills, many small enterprises, schools, shops and churches also connected to the grid. “When you move around Bondo you see happy people — and that’s because of electricity.”

Yet the big surprise in Bondo is not simply the supply of energy to such an isolated community, in a country where only one in eight citizens has access to grid electricity and on a continent where almost half the 1.2 billion population still lack this life-changing supply. The real eye-opener is the stack of 32 computers inside the concrete pump shed. This innovative mini-grid — located more than two hours from Malawi’s second city of Blantyre along bumpy roads and tracks that can become impassable in a torrential downpour — is mining Bitcoin to fund its operation.

It is a smart idea. The computers used to create valuable new Bitcoin tokens and validate transactions consume around the same amount of energy as a medium-sized country such as Sweden would generate. Hence the stinging critique of how this cryptocurrency wastes the planet’s precious resources. This initiative flips that narrative by using Bitcoin mining to fund energy in parts of Africa that are too poor or remote to merit connection to grids, but which do have plentiful supplies of potential power sources. Mining soaks up the excess energy of these renewable plants. And this delivers not just electricity but a powerful jolt to to drive development in the local economy.

The concept comes from a Kenyan firm, Gridless, set up in 2022, whose backers include Twitter founder Jack Dorsey. There are four other sites in Kenya and Zambia and plans for scores more across the continent. Its aim is to demonstrate how Africa could play a central role in countering the conventional belief that Bitcoin, now 15 years old, is used simply for risky speculation and dodgy transactions. Instead, it backs those who claim it will lead to more inclusive financial systems as it usurps the control of dysfunctional governments and manipulative central banks.

It will also release the community from reliance on foreign handouts to survive. The Bondo power plants were built by Mount Mulanje Conservation Trust, a local group trying to protect the mountain region’s unique bio-diversity, and were initially supported by finance from aid and development agencies — but now Bitcoin covers the running costs. This offers a commercial incentive that does not rely on altruism or subsidies to deliver power to remote regions, while exploiting energy waste at times of low use such as overnight.

Malawi, one of the world’s poorest nations, provides a powerful case study in the failures of aid. As former development minister Rory Stewart said in a lecture at Yale, Britain gave £4.5billion over half a century to this southern African country corroded by corruption and bad governance, yet it ended up “if anything, poorer than it was when we started”. “Bitcoin can prevent Bondo becoming the sort of white elephant that you see across Africa, built by aid groups and then abandoned,” said Erik Hersman, chief executive of Gridless. He admits that he is “not a big fan” of the sector. “They come in with low-cost loans and grants to finance all these schemes that they say will pay their way in 30 years but the sums never add up. This is a new way to finance development.”

Malawi also demonstrates another reason why there is rising interest in Bitcoin in Africa: people are seeking a safer home for their cash than local currencies. Prices rose sharply after its currency was devalued two months ago by 44% against the US dollar — the second decrease in value of the kwacha in 18 months. Many African countries on the continent have suffered also from catastrophic inflation, while official currency conversion rates can be significantly lower than street rates.

One Kenyan entrepreneur told me she turned to the cryptocurrency after seeing her savings constantly eroded even in a country with lower than average inflation for the continent. “I was trying to save to buy a house but kept finding my sums declining. I wanted more stability so tried Bitcoin, and then found it had other uses,” said Marcel Lorraine, founder of Bitcoin DADA. Her clients include a trader of alternative health products in a Nairobi street market, who found it much cheaper to use than changing currencies after being introduced to it by a Nigerian customer and is now hoping it will provide a stable platform for building her business to obtain a shop.

While Warren Buffet dismissed Bitcoin as “probably rat poison squared” and the economist Paul Krugman has compared it to a Ponzi scam fuelled by libertarian fantasies and “technobabble”, devotees see it as a liberating force due to the decentralised design created by its mysterious and pseudonymous creator, Satoshi Nakamoto. BlackRock, the world’s biggest asset manager, has even applied to launch a Bitcoin exchange-traded fund that may open up the market to the US wealth management industry.

Certainly Bitcoin, for all its fluctuations, can seem comparatively reliable if you live in Africa — or indeed many other parts of the planet, from Argentina to Lebanon. “This is what I have seen everywhere,” said Peter McCormack, who travels the world for a Bitcoin podcast. “Here is an alternative to gold and property for a middle class that has some money and patience, but is seeing expenses and costs rise while savings decline in value. And a strong middle class helps build a strong economy by driving consumer spending, reducing reliance on the state and driving innovation and entrepreneurship.”

Bitcoin has also become a helpful tool for activists and journalists in dictatorships, since it makes it far harder to track funds. In Togo, a West African state run by one despotic family since 1967, it is used to channel cash to opposition and civil society leaders despite the freezing of bank accounts. Bitcoin has been instrumental in delivering donations to Alexei Navalny’s Anti-Corruption Foundation in Russia and the pro-democracy movements in Belarus and Myanmar.

Alex Gladstein, chief strategy officer for the Human Rights Foundation and author of a book arguing that Bitcoin offers freedom from archaic monetary systems and political strifebelieves the cryptocurrency is especially exciting for Africans, since they suffer “all kinds of financial repression”. He points out there are 45 currencies on the continent — with 15 still controlled by France — with high transaction fees on conversion deals that are largely processed by Western firms with heavily-fluctuating rates. “Bitcoin provides an escape and an alternative for Africans while its use is less limited than some people think,” he says. “Entrepreneurs there have figured out how people without the internet can use Bitcoin, which is frankly remarkable.”

This agility is typical of the technological innovation exploding across Africa, driven by a young, rapidly growing and increasingly well-educated population. “The beautiful thing about Bitcoin is that it is a bottom-up technology and its adoption has been genuine at all levels,” said one key figure at the second African Bitcoin Conference in Ghana at the end of last year.

Only time will tell if Satoshi’s invention will turn out to be a bubble with bad consequences or, as optimists believe, a driver of profound change in the world. The fraud conviction of Sam Bankman-Fried, who ran one of the world’s biggest cryptocurrency exchanges, and admission of money-laundering by the boss of another major exchange has hurt the reputation of cryptocurrencies for many in the West. But Bitcoin certainly seems to offer something positive in societies scarred by autocracy, colonialism, military coups and woeful governance — as seen with those computers in a concrete shed in rural Malawi turning water into streams of cash to fund electricity.

Ian Birrell is an award-winning foreign reporter and columnist. He is also the founder, with Damon Albarn, of Africa Express.


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DIGITAL ECONOMY & TECHNOLOGY

Why are Indian Crypto Firms Making a Beeline for Dubai?

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Lured by a favourable regulatory landscape, an increasing number of Indian crypto companies are relocating to Dubai in an attempt to evade the high tax regime in their home country.

Crypto analysts see the exodus as a reaction to the stringent tax rules and ambiguous legal guidelines for digital currencies in India. In June 2022, the government introduced a 30 per cent tax on cryptocurrency trading profits and one per cent tax on transactions exceeding Rs10,000.

Juxtaposed with the harsh crypto ecosystem, low taxes, ease of business establishment, and dedicated regulatory framework for digital assets make the UAE, Middle East’s prime financial hub, an attractive destination for crypto firms. Dubai, in particular, excelled as a crypto innovation centre, thanks to strategic policies, and a supportive regulatory environment, crypt strategists said.

“A lot of Web3 founders prefer Dubai or Singapore as their hub because they have clarity and certainty around regulations and greater community support. When you’re setting up a business, investors are more comfortable investing in a jurisdiction where there are no last minute surprises. I am starting to see this trend on the ground and it must be reversed,” Sumit Gupta, CEO of CoinDCX, was quoted as saying by the media.

“We have seen a decline of more than 90 per cent in volumes. That’s a huge, steep decline. And what you have seen is that India continues to be number one when it comes to grassroots crypto adoption, but a lot of that activity is happening on alternative channels because of the high tax rates,” he said.

On top of 30 per cent tax plus applicable surcharge, India introduced four per cent cess on profits made from crypto trading. Last year, Indian crypto traders faced the introduction of a one per cent tax deducted at source on crypto transactions above Rs10,000. According to an amendment to the Income Tax Act, failure to pay TDS may result in a penalty equal to the unpaid amount, a 15 per cent interest on late payments and in certain cases even a jail sentence.

The UAE has been proactive in creating a regulatory environment that is both robust and flexible. Over the past three years, Dubai and Abu Dhabi have been driving most change by supercharging regulatory efforts to attract a global set of businesses focusing on digital assets, bringing significant talent, investment, and positive exposure to the region, crypto market experts said.

Dubai’s appeal as a crypto hub is fast growing because of its liberal initiatives in providing regulatory clarity with the launch of the Virtual Assets Regulatory Authority (Vara), putting out guidelines and policies about licenses to get. Businesses are coming in, predominantly from the UK, India, China, the US, Russia. Vara oversees cryptocurrencies and related activities in all free zones in Dubai except the Dubai International Financial Centre (DIFC). Abu Dhabi has a similar scope of work through the Abu Dhabi Global Market.

DIFC’’s independent regulatory authority, the Dubai Financial Services Authority, has been proactive in developing a regulatory framework that balances risk with innovation. DIFC has proposed to enact a new Digital Assets Law and new Law of Security regime, working closely with industry participants “to set out legal characteristics of digital assets, its proprietary nature, how it may be controlled, transferred, and dealt with by interested parties.”

The Dubai Multi Commodities Centre (DMCC), which houses over 23,000 companies, has a dedicated Crypto Centre featuring 550 Web3 companies out of which 50 are Indian.

Dubai also has gone out of its way to attract top crypto talent. The Dubai World Trade Centre has become a dedicated free zone for regulated virtual asset businesses. The specialised zone for virtual asset businesses allows for: foreign ownership; zero corporate tax; business start-up packages; co-working and office spaces, and access to a community of over 1,400 companies.

According to Chainalysis, the Middle East and Africa region has become the sixth largest crypto economy with an estimated $400 billion or 7.2 per cent of global transaction volume recorded between July 2022 and June 2023.


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