The question of whether cryptocurrency is halal or haram in Islam is a complex one, and there is no easy answer. There are a number of factors that Islamic scholars consider when making this determination, including the underlying technology of cryptocurrency, the way it is used, and the potential risks involved.
The underlying technology of cryptocurrency
The underlying technology of cryptocurrency is blockchain, which is a decentralized ledger that records transactions. This ledger is maintained by a network of computers, and it is not controlled by any central authority. Some Islamic scholars argue that the decentralized nature of blockchain makes it halal, as it does not involve interest or usury (riba).
The way cryptocurrency is used
Another factor that Islamic scholars consider is the way that cryptocurrency is used. Some argue that cryptocurrency can be used for halal purposes, such as buying and selling goods and services. Others argue that it can also be used for haram purposes, such as gambling or speculation.
The potential risks involved
Finally, Islamic scholars also consider the potential risks involved in cryptocurrency. These risks include volatility, fraud, and money laundering. Some scholars argue that these risks are too great, and that cryptocurrency should therefore be avoided.
The views of different fiqahs and ulamas
There is no consensus among Islamic scholars on whether cryptocurrency is halal or haram. Some of the major fiqahs have issued fatwas (religious rulings) on the matter, but these fatwas have been contradictory.
For example, the Council of Fatwa of the Islamic Fiqh Academy of the Organization of Islamic Cooperation (OIC) issued a fatwa in 2018 that declared cryptocurrency to be haram. The fatwa stated that cryptocurrency is "a form of gambling" and that it "poses a threat to financial stability."
However, the Indonesian Ulema Council (MUI) issued a fatwa in 2019 that declared cryptocurrency to be halal, subject to certain conditions. The fatwa stated that cryptocurrency can be used for halal purposes, such as buying and selling goods and services, but that it should not be used for gambling or speculation.
The views of contemporary ulamas
Some contemporary ulamas have also expressed their views on cryptocurrency. For example, Mufti Muhammad Abu Bakar, a Sharia adviser and compliance officer at Blossom Finance in Jakarta, has argued that bitcoin is halal. He has stated that bitcoin is a "digital asset" that can be owned, possessed, and stored, and that it does not involve interest or usury.
However, other ulamas have argued that cryptocurrency is haram. For example, Sheikh Yusuf al-Qaradawi, a leading Islamic scholar, has stated that cryptocurrency is "a form of gambling" and that it "is not a real currency."
The question of whether cryptocurrency is halal or haram in Islam is a complex one, and there is no easy answer. Ultimately, each individual Muslim must decide for themselves whether or not they believe that cryptocurrency is in line with Islamic teachings.
It is important to note that the views of Islamic scholars on cryptocurrency are constantly evolving, as the technology continues to develop. It is also important to remember that the decision of whether or not to use cryptocurrency is a personal one, and that there is no right or wrong answer.
If you are a Muslim who is considering using cryptocurrency, it is important to do your own research and consult with a qualified Islamic scholar to make the best decision for you.