CRYPTOCURRENCY AS MONEY: Islamic Monetary System Perspective (original) (raw)

The requirements of cryptocurrency for money, an Islamic view

Heliyon, 2020

This research aims to evaluate the suitability of cryptocurrency as money from the Islamic perspective. Money, in the Islamic perspective, has specific characteristics and requirements, such as stability and is based on assets. Cryptocurrency may not fulfil this as it has queries as money from the Islamic perspective. The research method applied data of 23 cryptocurrency prices and related information. The result shows that cryptocurrency is hugely volatile and has limits to being called ‘money,’ as it is limited and used for speculation, which is prohibited in Islam. The research implies that Muslims would be reluctant to use cryptocurrency as money, as a currency of transaction. This reason raise an expectation that the cryptocurrency will not develop rapidly in Muslim countries.

Cryptocurrency in Islamic Economic Principles

Dinasti International Journal of Education Management And Social Science, 2022

Islam as a religion that is flexible, dynamic and adaptive to the times. However, this certainly has ethical limitations and has the principle that values in Islamic teachings must be the basis in every human activity, especially in community activities or muamalah. Therefore, this paper aims to critically describe cryptocurrency investment in Islamic economic principles.The method used in this paper is a scientific study approach with literature study, with data collection through the study of books, literature, notes, and various reports related to the problem to be solved. Based on the results of this study, cryptocurrency when viewed in Islamic economic principles does not meet the criteria as a medium of exchange and investment that is permitted in Islam. Cryptocurrencies at the beginning of their creation had a clear goal, a complicated system that was not acceptable to everyone. So that cryptocurrency can be manipulated and monopolized by certain parties. In addition, crypt...

An Islamic Approach towards the Nature & Problems of Cryptocurrency

Al-Aijaz Research Journal of Islamic Studies & Humanities (Bi-Annual) Trilingual: Urdu, Arabic and English ISSN: 2707-1200 (Print) 2707-1219 (Electronic), 2020

In an Islamic framework, the scholars need to verify all aspects of the emerging phenomenon known as cryptocurrency. It works as an agent for the prevailing forms of currencies and substitutes the need to carry it everywhere in its physical form which may become a security threat. The theologians have always disapproved what seem to them innovative, alien and working as an agent of change. However, whatever may be their stance about previous innovations, the society had to act otherwise due to the compelling needs that had to be fulfilled. The difference of opinion between the Muslim Scholars about the cryptocurrency has once again divided the Ummah about its acceptance, substituting other forms of currency like fiat currency, plastic currency etc. No doubt these forms of currency have heavily damaged the financial markets due to their speculative nature. It seems that Muslim Ummah is again standing on the cross roads where it is unable to decide its fate. This article presents the basic concept of cryptocurrency & virtual money, its pros & cons, its status regarding Pakistani & Islamic Perspective. At the end, various conclusions and suggestions have been drawn.

Cryptocurrency from the Perspective of Shariah

Universiti Utara Malaysia, 2018

The purpose of this study is to investigate one of the types in Fintech area, which is cryptocurrency from the perspective of Shariah. Until now, there are around 1,600 types of cryptocurrencies around the world. However, one of the most sought cryptocurrency in Malaysia is Bitcoin. Since it is still a new in Malaysia, the in-depth study on this has not yet been fully completed. By the realization to study this issue, a research has been conducted to become an eye-opener for those who want to dig deeper to gain the knowledge about this especially on the views from Islamic perspective or to be specific, from Shariah views. On the other hand, many issues arise regarding this cryptocurrency especially bitcoin. Therefore, this research will investigate the concept of money with its characteristics, and analyze if cryptocurrency does have all the characteristics of real money in it. Move forward to the next objective, this study will also explain on the Islamic perspective, and to be exact, Shariah views of cryptocurrencies as the currency or as a medium of exchange. Until now, there is still not much current views from the current scholars on this exact matters. Most of the views are regarding on whether their countries accepting it to be used or not, and the majority are the views from the government. Still, there is no specific hukm on the uses of cryptocurrencies. So, the outcome of this study will provide an important insight for potential customers who still want to invest their money in cryptocurrencies.

E-2 an Islamic Approach Towards the Nature of Cryptocurrency

Al-Aijaz Research Journal of Islamic Studies & Humanities, 2020

The genesis of Cryptocurrency in Islamic economics: Shariah analysis of HLC tokens

University Journal , 2018

Crypto cash and payment through electronic money has gained popularity after the computer system is adopted by financial industry. Furthermore, the research on application of blockchain technology in the Islamic economy system precisely the potential of Cryptocurrency in providing a better alternative to current fiat money system which will be the scope of this paper. The cryptocurrency system relies on the payment network, the infrastructure required to manage payments and avoid multiple spending using the same funds has always been costly and manage through a centralized banking network. This paper aims of exploring the potential and capability of Cryptocurrency in Islamic economics that fulfils the Shari'ah requirements which will provide financial and stable currency. The paper will adopt the Shariah mind to analyse Shariah experts different opinions on the Crypto currency. The method used for analysing this object includes a library research on related topics that helps understanding the functions of money and Crypto currencies as well as study of several cases that can assist in fulfilling the aims of this paper. Finally, the paper will use analyse the Shariah experts opinions on the Cryptocurrency and the area of Cryptocurrencies and blockchain requires further research from a Shari'ah perspective in order to facilitate a better understanding and create more awareness.

A Critical Analysis of Cryptocurrencies from an Islamic Jurisprudence Perspective

Turkish Journal of Islamic Economics, 2021

Money has changed its form many times throughout history and has begun to turn into digital form as an alternative to the current situation. The newest type of money form is a cryptocurrency which has been developed independently of any central authority. The usage areas of cryptocurrencies are increasing day by day. Bitcoin is one of the most accepted crypto-currencies in the world, which was issued in 2009, dominated the cryptocurrency market and attracted the attention of large masses with its rapid rise in value. Cryptocurrency market size exceeded $800 billion in early 2018. Most of the cryptocurrency users want to get a share from value increases of cryptocurrencies. However, these behaviours are not in line with the philosophy of cryptocurrencies. Cryptocurrencies also cause problems of legitimacy for Muslim users in terms of Islamic Jurisprudence (Fiqh). Although many religious institutions and Islamic scholars say that cryptocurrencies are haram, several Islamic scholars co...

CRYPTOCURRENCY TECHNOLOGY: ISLAMIC COIN AS AN INVESTMENT INSTRUMENT IN ISLAMIC PERSPECTIVE

CRYPTOCURRENCY TECHNOLOGY: ISLAMIC COIN AS AN INVESTMENT INSTRUMENT IN ISLAMIC PERSPECTIVE, 2023

This paper discusses cryptocurrency technology, particularly Islamic Coin, as an investment instrument that complies with Sharia principles in the context of Islamic views. Considering the rapid growth of cryptocurrency and the increasing interest in Sharia-compliant investments, this research aims to provide an in-depth understanding of the potential and impact of using cryptocurrency technology, specifically Islamic Coin, in the scope of investment according to Islamic teachings. The research method applied is literature review and content analysis to compile a comprehensive overview of recent developments in the use of cryptocurrency technology in accordance with Sharia principles. By examining relevant literature, fatwas, and Islamic financial guidelines, this research explores how cryptocurrency technology, through Islamic Coin, can facilitate investments that comply with Sharia provisions. The results show that Islamic Coin, with its blockchain technology base and financial features regulated according to Sharia principles, has the potential as a legitimate and sustainable investment instrument in the Islamic view. However, it is important to consider strict regulations and supervision to ensure continuous compliance with Sharia principles. This research provides a foundation for further understanding the integration of cryptocurrency technology in the context of Sharia-compliant investments.

The suitability of cryptocurrency in the structure of Islamic banking and finance

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah ( Journal of Perspective on Financing and Regional Development), 2019

This paper tends to examine cryptocurrency and its permissibility in the structure of Islamic banking finance. It identifies the major types of cryptocurrencies and also revealed its benefits. Despite these benefits and relating it to Islamic finance it was viewed from two angle; cryptocurrency and money in Islam and also cryptocurrency and the principles of Islamic finance. The study revealed it is compatible to structure of Islamic banking and finance when compared side by side to the features of fiat money which is currently in use. More so, the study clears some of the key issues like its legal tender, issuer unknown, money laundering & illicit purpose etc usually raised against cryptocurrency. The study concluded that cryptocurrency as an economic innovation has secured a pass mark to fit into the structure of Islamic banking and finance. The study further recommends that there is need to create standards guiding its operations, further ensure full disclosure on its transactions etc.

Dynamism and mechanism of digital currency (cryptocurrency) towards Islamic finance

2019

Technology advanced has brought rapid changes in all human activities along with financial activities and tools. Digital currency one of the technological innovations which have taken significant focuses from consumers, investors, researchers, entrepreneurs and policy makers around the world. with the trend of changing patterns, Islamic finance is rapidly developing all over the world by serving Muslims and non-Muslims, as a result, it is mandatory for Islamic finance to adapt with modern technology systems in terms of providing innovative products and services to the consumers in line with shariah perspectives. As a result, cryptocurrency (digital currency) has taken the focus on Islamic scholars in regards of its permissibility. There are many arguments over the permissibility issues. Therefore, this study aims to explore those issues and mechanisms of cryptocurrency in order to evaluate with Islamic perspective. This study gathered secondary sources from past literatures, books, ...

CRYPTOCURRENCY AS MONEY: Islamic Monetary System Perspective (original) (raw)

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