bitcoin banks will have to work more like sharia banks not like banks in the west
Im not sure I understand.. I looked up sharia banking but it all seems like a shell game to comply with the Islamic law against charging interest while still charging interest.
My (totally crude and uninformed) understanding of Islamic banking is basically that there is no uncollateralized credit, only equity. Fully collateralized debt it still possible by treating it as equity in the collateral itself.
The "no uncollateralized credit" part is what's similar to bitcoin. There are no instances of a court issuing a judgment in which bitcoins are considered to be a legitimate asset, and I doubt that is going to happen anytime soon. So people structure their bitcoin transactions so that they don't have to rely on courts when things go wrong (often this structuring is expensive/difficult/risky, but that's the tradeoff).