How to create an interest-free financial system?

[Good-Person]

Interest-based financial system can destroy the economy of a country. When a country borrows loan and when they need to pay heavy interest on those loans, the inflation rate increases a lot. This is why interest-based economy always suffers. So, how to create an interest-free financial system?

 

[Debashis]

Creating an interest-free financial system involves implementing alternative mechanisms such as profit-sharing, equity-based financing, and risk-sharing. This can be achieved through practices like Islamic banking, where loans are structured as partnerships or trade transactions. It requires a shift towards a more equitable and sustainable economic model.