Religious beliefs have always existed amongst humans and we all know these beliefs extend to inherit our generations since ever.
Well, everything is being looked upon religiously and here we are talking about one of the most modern currencies, “Bitcoins” and how it complies with the religious beliefs of Muslims who contribute about roughly 23 percent of world’s population.
There has been a gradual increase in enthusiasm for Islamic Finance and Banking regarding cryptocurrencies that has led to even a discussion to held within the International Monetary Funds official board.
Islamic Canonical Law on earning interest
Muslims as per Islam have distinctive needs for Banking and Financial Services.
Looking at the Islamic Canonical Law, or Shariah, that is based on the learnings from the Holy Quran Sharif forbids various activities like receipt of certain interest from business investments which are contrary to Islam and is unjust or RIBA.
Well, going by that, we could say, Bitcoin is Halal.
Why Bitcoin is Halal?
While many modern currencies are prohibited as per Islamic Banking and Finance, considering they are based on debt.
Blockchain Management Systems on the other hand just like ‘Bitcoins’ which is more of a virtual currency, is considered to comply with Shariah and assimilate the principles of Maslaha or Maslahah (a matter of public and social interest).
Bitcoin since is based on the methodology of ‘proof of work’, which is permissible by Islamic point of view can be justified as Halal, while all modern money may not be considered as Halal in the principles of Shariah
Can Bitcoin be considered Haram?
As per Shariah if the interest or gains on money are made through prohibited activities such as gambling, Bitcoin hence would be considered as Haram.
Decision on Bitcoin being Halal or Haram
Well, as the topic itself has rapidly attracted the global financial boards along with the Islamic Banking and Finance, we are yet to discover if Bitcoin is Halal vs Haram.
With many Islamic scholars from various countries have a mixed view on Bitcoins or crypto currency, this is still a matter to be decided by Islamic Financial Institutions.
We know many Muslims and financial experts await in anticipation of the decision to know whether Bitcoin is Halal or Haram.
Stay with us for any more updates on the debate!