Apr 13, · 13 Apr 74 A religious advisor has announced that Bitcoin is compliant with Shariah law, according to a report. According to a report from a financial technology startup in Indonesia, Bitcoin is “generally permissible” under Shariah law. Nevertheless, returns on Bitcoin investment would be lawful and Shariah compliant according to this understanding. However, the global Islamic finance bodies and expert Shariah scholars are in the best position to offer the most accurate advice. The entire paper can be downloaded from the link below: Research Paper on Bitcoin – Mufti Faraz Adam. While interpretations of what is and isn’t “Sharia-compliant” can vary, there is still a pressing need perceived by practicing Muslims to abide by Sharia, or “the way.” As such, even topics like bitcoin have been addressed and clarified in the context of the faith.
Is bitcoin shariah compliantBitcoin: Shariah Compliant? – Darul Fiqh
This gives a glimpse of a futuristic cashless, digital economy. With all the excitement and boom of Bitcoin, the very essence of Bitcoin is still obscure. Is it money? Or a commodity? Or nothing at all? In this research, an interpretive and inductive method is adopted in analysing the primary and secondary sources of Islamic law to identify the principles of defining money in Islamic law.
The various scholarly opinions are considered in respect to Bitcoin. Bitcoin falls short of fulfilling the principles of the preservation of wealth in Shariah. Bitcoin is further assessed in terms of the principles of Islamic moral economy. A key theme and objective of Islamic moral economy is embedded financing and investments linked to the real economy. However, there are other principles in the religion that have some seeing bitcoin as Halal, and highly beneficial to Muslim finance.
While Sharia is typically understood to be superseded by governmental law — thus rendering crypto activity haram where the state has deemed the same activity illegal — the nature of bitcoin yet has some interesting overlap, and creates potential gray areas, where Sharia law is concerned. From a shariah perspective, I think this is the ultimate goal — leveraging new technologies to benefit all parties in a legitimate, halal manner.
What are your thoughts on Sharia compliance and Bitcoin? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies.
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