Bitcoin is permissable in Islam.

[Chilwell]

INTRODUCTION

Cryptocurrency is essentially a digital currency exchange and digital payments platform that uses blockchain technology. The technological and digital revolution over the last few decades has meant that innovative payment systems have been created and utilised, and cryptocurrency is one of the major breakthrough payment systems for business and personal finance use.

Although there are over 2,000 cryptocurrencies on the market now, Bitcoin is probably still the most known form of cryptocurrency in the blockchain market, and was the first cryptocurrency coin to go mainstream but there are other cryptocurrencies entering the market.

For Muslims across the Islamic world, the question arises as to whether crypto payment platforms are deemed to be halal or haram in the eyes of Allah and in accordance with Shariah principles, and whether as a currency it prevents money laundering.

CRYPTOCURRENCY

One of the defining aspects of cryptocurrency is that there is no central authority such as a Government that authorises it or records it.

Ultimately, it is the duty of every Muslim to be seeking knowledge, and this guide will address the use of the cryptocurrency market and its intrinsic value. We will consider whether crypto currency is permissible as a form of actual money under Islamic laws and in the Islamic world. We will consider the views of Islamic jurists and scholars on this emergence of what is considered to be new money addressing the question of is cryptocurrency halal.

ISLAMIC SCHOLARS INTERPRETATION - IS CRYPTOCURRENCY HALAL?

A comprehensive Islamic law interpretation, one that sparked a massive rise in Muslim investment in Bitcoin and Ethereum in 2018, was provided by Sharia advisor Mufti Muhammad Abu-Bakar (former advisor to Blossom Finance) who looked at the question of is cryptocurrency halal as a money supply. He argued that Bitcoin is permissible under Islamic principles.

ISLAMIC SCHOLARS

Another reason Islamic jurists and scholars from Muslim countries argue that cryptocurrency is halal is that the concept of the blockchain and other cryptocurrencies are inherently anti-interest when looked at from a money generation source or perspective.

Islamic banking laws are also anti-interest so the technology, pricing, and buying and selling of cryptocurrency money is deemed halal by many Islamic scholars who rely on the teachings of Prophet Muhammad PBUH when seeking guidance about permissibility (ultimately, only Allah knows best).


Source: https://www.qardus.com/news/what-is-cryptocurrency-and-is-it-halal#:~:text=As%20cryptocurrency%20money%20is%20deemed,as%20a%20form%20of%20currency.

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1715106757

[_act_]

Bitcoin is now legal in some Muslim countries. If governments understand what bitcoin is, no country would ban it.

Although there are over 2,000 cryptocurrencies on the market now, Bitcoin is probably still the most known form of cryptocurrency in the blockchain market, and was the first cryptocurrency coin to go mainstream but there are other cryptocurrencies entering the market.

There are over 21000 cryptocurrencies that are existing.

One of the defining aspects of cryptocurrency is that there is no central authority such as a Government that authorises it or records it.

It was true when bitcoin was created, also bitcoin is still like that, but altcoins are centralized to an extent.

[Chilwell]

I make this research because I found myself in a Muslim community where I want to teach them about bitcoin and their were surprised. They started asking me questions, what is that? Is it money? I told them to carm down, I will knowledge them on it. One of them from the community stood up and throw me questions about is Islamic rules, that is What Islam said about bitcoin?

[noorman0]

The stance on cryptocurrency in Islam cannot be generalized. Islam has 4 main guiding figures as a reference approach to making laws regarding new, more modern matters, especially in the field of finance, which they call "madzhab". Southeast Asian Islamic countries have different laws because of the above, for example cryptocurrency in Malaysia is halal while in Indonesia it is the opposite.

[DARKASHY]

Depending on usage. Bitcoin is legal if used as a medium of trade. For instance, utilizing Bitcoin for cash transactions similar to those using fiat currencies.
Don't limit your understanding since Bitcoin has been explicitly governed by Muslims.

[NotATether]

Generally, all the Arab banks follow these principles (there are no western bank branches to be found there), so when these countries ban cryptocurrencies for whatever reason, it's for political and not religious reasons e.g. in Turkey, Afghanistan.

[GreatArkansas]

Depending on usage. Bitcoin is legal if used as a medium of trade. For instance, utilizing Bitcoin for cash transactions similar to those using fiat currencies.
Don't limit your understanding since Bitcoin has been explicitly governed by Muslims.

Yeah, depends on usage. As far as I know, there are lot of prohibited by their religion, especially gambling, so if you do gambling using Bitcoin, for sure it's not legal based on their religion.
I have a friend of mine that also mentioned I think about doubling your money or somehow joining non-legit platforms.

Basically, Bitcoin is like fiat that they are using daily, you can use it anywhere, legal or non legal.

[jrrsparkles]

Many leaders and influencers uses Bitcoin also for their dirty political game but actually they don't know anything about Bitcoin at all still they debate its against the Islam, in 2018 period even many of my friends refused to invest in bitcoin because their leaders says its haram so its against their law but the reality is the current banking system is against their Islamic law and we need to know how many Muslim doesn't have the bank account...

[Lucius]

Generally, all the Arab banks follow these principles (there are no western bank branches to be found there), so when these countries ban cryptocurrencies for whatever reason, it's for political and not religious reasons e.g. in Turkey, Afghanistan.

Turkey (like Thailand) banned the use of cryptocurrencies as a means of payment, but trading is still allowed. In addition, in the discussion, one member who was obviously from Turkey confirmed that many do not respect this ban and continue to accept cryptocurrencies (restaurants, shops...)


I respect all religions, but I have not yet read anywhere or found out in any way that any other religion expressly forbids cryptocurrencies, except of course Islam, with which this issue has been associated for years. I already wrote once before that I would seriously consider belonging to a religion that would limit me in what I would invest in or perhaps how I would dress.

[tbct_mt2]

Basically, Bitcoin is like fiat that they are using daily, you can use it anywhere, legal or non legal.

Bitcoin is permissionless, censorless and borderless. You can use Bitcoin everywhere if you want for transactions. However, if you want to use it for exchanging it to fiat currencies, goods, etc. you will have to care of local laws.

Even it is not legal yet in one nation, you can still use VPN or Peer to Peer trading to buy or sell it. I don't scare about it too much because I believe in future, the adoption for Bitcoin only becomes bigger.

[Zanab247]

I make this research because I found myself in a Muslim community where I want to teach them about bitcoin and their were surprised. They started asking me questions, what is that?  Is it money? I told them to carm down, I will knowledge them on it. One of them from the community stood up and throw me questions about is Islamic rules, that is What Islam said about bitcoin?

I don't think, Islam is against any good thing in the land, just that the leaders of Islam don't know what Bitcoin is all about and what it can do to any region that will make it legal for their followers to enjoy. Other countries that rejected Bitcoin years ago Base on region in their land are now looking for way to make it legal for their citizens and to create a good environment for the bitcoiners in the land. I believe, with time  they will break the Islamic rules to allow their citizens to have access to Bitcoin and to acquire the knowledge of Bitcoin so that they can grow well like the way other countries that made it legal are growing in their land.

[Coyster]

Don't limit your understanding since Bitcoin has been explicitly governed by Muslims.

Bitcoin is not governed by anyone, religion or group of people, bitcoin is decentralized and only the user who owns the funds governs controls their own personal funds, i don't know where you get that impression of Bitcoin being governed by muslims.

Depending on usage. Bitcoin is legal if used as a medium of trade. For instance, utilizing Bitcoin for cash transactions similar to those using fiat currencies.

Not only in Islam, but generally, and even from an ethical point of view, we all want Bitcoin to be used for legal activities, but just as fiat is used too, there's nothing we can do to stop some fraudulent people from using Bitcoin for the wrong reasons.

[taufik123]

Depending on usage. Bitcoin is legal if used as a medium of trade. For instance, utilizing Bitcoin for cash transactions similar to those using fiat currencies.

Not only in Islam, but generally, and even from an ethical point of view, we all want Bitcoin to be used for legal activities, but just as fiat is used too, there's nothing we can do to stop some fraudulent people from using Bitcoin for the wrong reasons.

like a knife that can be used for cooking and can be used to injure people. Just how to use it. Bitcoin is just a digital asset that can be used for anything. As you said, in general this is just a matter of ethical point of view, not fixated on any particular religion. Any religion will certainly forbid if it is used for illegal things.

[BIT-BENDER]

This topic is one that fascinates me everytime I read it, and that's religion having laws on digital asset like crypto-currency. The origins of religions most of the times dates back to times before Christ and by this times no one would have Phantom an idea of digital asset or even bitcoin.

How come after its creation and it gain popularity religion started to be brought into it. It's sentimental to me to say the least, I feel if someone in power doesn't like the idea of a thing the person try hard to find out rules that they would use to stop it. And that's exactly what Bitcoin and Crypto-currency is going through in the hands of religion and some Government.

[Little Mouse]

Using bitcoin as a form of monetary transaction is the same as using any other form of currency. It can be traditional money, it can be gold or silver, or anything else. I really don't see a reason to have an argument here as some of the scholars did. Some even said that it's haram. I'm not a scholar, nor any expert in religion but I can surely say that if you are doing bad activities with any form of currency, it's bad while if you are not going to use it for bad activities, it's good regardless of whatever the currency is.

This topic is one that fascinates me everytime I read it, and that's religion having laws on digital asset like crypto-currency. The origins of religions most of the times dates back to times before Christ and by this times no one would have Phantom an idea of digital asset or even bitcoin.

That's something else. There are Quran and Hadith to live a peaceful life. Scholars use some references to define something halal or haram but some don't get the actual reference and which is why they make mistake on such issue.

[bitcampaign]

I live in a place with the largest Muslim majority so many people also think that crypto is haram in my country, of course, that's probably because the religious leaders at my place don't learn a little technology about crypto and learn a little so it will be easier to interpret the Islamic rules. applies, unfortunately it doesn't happen in my place because the average forbids it, I will give this reference to my friends, thank you

[hugeblack]

I do not know what was said that it is (“halal-permitted”), but to issue such statements, you need a body of senior scholars, and these scholars need strong evidence, and then you can say that it is permissible.
It is just as if a scientist said that there is water in the planet Neptune, but it is not the same as saying that there is water in the moons of Jupiter, which is considered by the scientific community.

[Vaskiy]

Look at Nigeria. It have got around 55% Islam population, and the people are getting adopted to it. This have been happening as a result of technology advancement and people are interested to get used to it. Everyone are talking about its need and the goodness it can bring into the society. Different religions have different beliefs and this also doesn't mean majority of the people follow it.

[OgNasty]

Forgive me for my ignorance, but is Ethereum now frowned upon in the Islam community now that staking has become a part of their coin?  This also leads me to wonder, since the Lightning network uses routing fees built into the protocol, is that also frowned upon in the Islam community?  If Bitcoin were to implement on-chain staking, would this effect the acceptance of it by Islamic people?  I seem to remember back in the day the biggest lender here was Islamic and refused to participate in loans that had an interest rate or anything that had a direct return of dividends, etc.

[ChiBitCTy]

Bitcoin is now legal in some Muslim countries. If governments understand what bitcoin is, no country would ban it.

Although there are over 2,000 cryptocurrencies on the market now, Bitcoin is probably still the most known form of cryptocurrency in the blockchain market, and was the first cryptocurrency coin to go mainstream but there are other cryptocurrencies entering the market.

There are over 21000 cryptocurrencies that are existing.

One of the defining aspects of cryptocurrency is that there is no central authority such as a Government that authorises it or records it.

It was true when bitcoin was created, also bitcoin is still like that, but altcoins are centralized to an extent.

Government’s absolutely without question know exactly what bitcoin is now and how it works and that’s exactly why so many of them don’t like it and it’s properties. They realize that it’s a better system than their current system and it threatens the strength of their own currency which is of course something no government wants or is okay with.