Investigating Cryptocurrency as Shari’ah-Compliant Money by Critically Analyzing Arguments of the Opponent Scholars

Authors

  • Samina Naz University of Peshawar
  • Dr. Naila Nazir Chairperson/Associate Professor, Department of Economics, University of Peshawar

Keywords:

Cryptocurrency, Shari’ah, Medium of exchange, Unit of account, Store of value, Gharar, Maysir

Abstract

This paper aims to investigate whether cryptocurrency serves as Shari’ah-compliant money through critically analyzing arguments of the opponent Islamic scholars. Generally, something is referred to as money if it is used as a medium of exchange, unit of account, and store of value. Cryptocurrency such as bitcoin is māl because it is a valuable thing, it has uses and benefits, and it can be stored and presented electronically. Presently, it unsatisfactorily meets the functions of money such as medium of exchange, unit of account, and store of value. Bitcoin also fails to fulfill maqāṣid al-shariʿah at this stage. It must not necessarily have an intrinsic value. Volatility, speculation, and chance of being used in illegal activities are external factors and have no direct concern with regards to determining something as a valid currency.

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Published

2022-09-14

How to Cite

Naz, S., & Nazir, N. (2022). Investigating Cryptocurrency as Shari’ah-Compliant Money by Critically Analyzing Arguments of the Opponent Scholars. Bannu University Research Journal in Islamic Studies, 9(1). Retrieved from http://burjis.com/index.php/burjis/article/view/245