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هل تعترف الشرعية بثمنية العملات الرقمية المشفرة
[Shariah stand on cryptocurrencies]

Author

Listed:
  • Abozaid, Abdulazeem

Abstract

Undoubtedly, the emergence of cryptocurrencies has imposed upon Shariah scholars the challenge of addressing related Shariah issues and providing Muslims with clear answers as to whether or not they can deal with, or invest in, these currencies. The challenge, however, is in demystifying these currencies and understanding their technicalities and economic implications. Hence, it is necessary to first study the technicalities of these currencies in order to address their various Shariah issues. Cryptocurrencies involve various Shariah matters, including the very permissibility of their issuance in view of the fact that they are not backed by real valuable assets or supervised by governments or financial authorities, such that people dealing with them are vulnerable to possible fraud and manipulative fluctuations in their values. Other Shariah issues also include trading in them and whether or not they are considered as interest-bearing (ribawi) commodities such that the injunctions pertaining to interest (riba) may apply to them, as they apply to conventional currencies. In addition, they have potentially negative implications for the market, such as their use in money laundering, drugs trafficking and other illegal dealings. This paper treats the Shariah aspects of cryptocurrencies.

Suggested Citation

  • Abozaid, Abdulazeem, 2018. "هل تعترف الشرعية بثمنية العملات الرقمية المشفرة [Shariah stand on cryptocurrencies]," MPRA Paper 93289, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93289
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    References listed on IDEAS

    as
    1. Abozaid, Abdulazeem, 2016. "Critical review of the tools of Ijtihad used in Islamic finance," MPRA Paper 92538, University Library of Munich, Germany.
    2. Aaron Yelowitz & Matthew Wilson, 2015. "Characteristics of Bitcoin users: an analysis of Google search data," Applied Economics Letters, Taylor & Francis Journals, vol. 22(13), pages 1030-1036, September.
    3. Michel Rauchs & Garrick Hileman, 2017. "Global Cryptocurrency Benchmarking Study," Cambridge Centre for Alternative Finance Reports 201704-gcbs, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge.
    4. Basu, Kaushik, 2014. "Ponzis : the science and mystique of a class of financial frauds," Policy Research Working Paper Series 6967, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cryptocurrency; Bitcoin; Shariah rules on Bitcoin; digital money;
    All these keywords.

    JEL classification:

    • K1 - Law and Economics - - Basic Areas of Law
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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