Cryptocurrency from a shari’ah perspective
For the past few years there has been a significant increase of people’s interest in crypto-currencies. Seminars and conferences have been organized to discuss the nature and feasibility of cryptocurrencies. Some argue that it is good to have an alternative to the current fiat money system in wh...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English English |
| Published: |
International Islamic University Malaysia (IIUM)
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/70653/ http://irep.iium.edu.my/70653/ http://irep.iium.edu.my/70653/13/70653%20Cryptocurrency%20from%20a%20shari%E2%80%99ah%20perspective.pdf http://irep.iium.edu.my/70653/2/70653_Cryptocurrency%20from%20a%20shari%E2%80%99ah%20perspective_scopus.pdf http://irep.iium.edu.my/70653/14/70653%20Cryptocurrency%20from%20a%20shari%E2%80%99ah%20perspective%20WOS.pdf |
| Summary: | For the past few years there has been a significant increase of
people’s interest in crypto-currencies. Seminars and conferences
have been organized to discuss the nature and feasibility of
cryptocurrencies. Some argue that it is good to have an alternative to
the current fiat money system in which the predominant role is
played by banks, while a cryptocurrency does not require any bank
account, tax payment and auditing. Some others disagree with these
arguments and claim that any mode of payment in other than
traditionally known instruments such as cash payment,
telegraphic-transfers, cheques and so, will open the door to avoid tax
and audits, which in turn may seriously effect a government’s budget
and may even decrease GDP. This research uses theoretical,
descriptive and analytical methods of research and therefore focuses
on the following important points: a) defining the place of
cryptocurrency in the financial system by determining the extent of its
influence; b) reviewing the literature on the topic, which will allow
us to determine the current understanding of the problem by modern
science; c) unveiling the key requirements of Shari’ah for money and
money circulation to formulate a standard understanding of money in
Shari’ah; d) comparing the characteristics of paper money and
crypto-currencies (using the bitcoins as an example). The authors
believe in permissibility of using the cryptocurrencies but with strict
reservations. |
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