Now Reading
Is Bitcoin Halal?

Is Bitcoin Halal?

trending crypto news

Lately the world is in the rage to keep up with the trend since the existence of cryptocurrencies such as Bitcoin (BTCUSD). 

trending crypto news

Cryptocurrency is a type of virtual currency that uses blockchain technology to operate. Thus, Crypto is a type of digital asset that is based on decentralized networks. This indicates that currencies exist separately from centralized entities like governments and banks.

Most scholarly interpretations of digital currencies in the last few years have determined that cryptocurrencies are in fact halal. Nevertheless, the religious leaders in Indonesia have forbidden all the Muslims in their countries from using Bitcoin and other forms of cryptocurrency. 

According to independent.co, “The National Ulema Council, which serves as the country’s authority on Shariah compliance, announced on Thursday that cryptocurrencies were haram as they contain elements of uncertainty, wagering and harm.” 

There were no ban by the countries legislators or the forbidden does not serve as official decree but however, it will probably leaves a significant impact on the people when they were using this type of assets in the world’s largest Muslim country. 

Indonesia’s central bank ruled cryptocurrency “not a viable instrument of payment” in 2018. Unfortunately, in February 2019, it legalized the trading of bitcoin and other cryptocurrencies as commodities. 

In May, Indonesia’s commodity futures trading regulatory agency, revealed that the country’s cryptocurrency investors were around 4.45 million, with 229 various cryptocurrencies legally traded over 13 authorized platforms and exchanges.  

In other news, Mufti Taqi Usmani, A pioneer in the field of Islamic Finance, believes that cryptocurrency is used for speculative purposes, however, he does not consider it to be either halal or haram. Nonetheless, cryptocurrency can be termed as a disliked form of trading from a shariah compliance point of view. 

“Several reasons contribute to the increased interest in crypto assets, including the simplicity with which Know Your Customer (KYC) processes may be completed, as well as the speed at which deposit and withdrawal transactions can be processed,” says the report. Chairman of the Indonesian Blockchain Association, Oham Dunggio.

He also stated that the crypto market operates 24 hours a day and this is the main reason why many young investors are choosing crypto over any other types of investments. Plus, with all the trending crypto news on the internet are making it more reliable. 

See Also
free slot machine games

While some countries have taken a hard line on cryptocurrency, voiced concern about scams and threats to traditional financial institutions, others here have embraced it for its ability to act as an investment tool, transform remittance services, and reduce reliance on the US dollar as a reserve currency. 

El Salvador became the first country in the world to recognize bitcoin as legal currency earlier this year. The Central American country has also invested in Bitcoin, and has just declared that revenues from recent price increases will be used to build 20 new schools in order to teach the students more about this cryptocurrencies. 

Mufti Muhammad Abu-Bakr, a former Sharia consultant to Blossom Finance, published a paper in 2019 that argued that cryptocurrencies, including bitcoin, should be considered halal and legal under Sharia law. 

The ruling of Mufti Abu-Bakr was based on the fact that all conventional and lawful currencies include a speculative component, and hence cryptocurrencies should be permissible in Islam. Muslims have been considering investing, trading, and studying bitcoin as a new form of transacting with others since his article. 

 

What's Your Reaction?
Excited
1
Happy
1
In Love
1
Not Sure
0
Silly
0

© 2019 Issue Magazine Wordpress Theme. All Rights Reserved.

Scroll To Top