In recent years, cryptocurrency has become a major topic of discussion worldwide. Cryptocurrencies, such as Bitcoin, Ethereum, and others, have a huge interest in their potential to change the way we think about money.
However, for Muslims, there is an important question to consider:
Is crypto currency halal in Islam?
What is Cryptocurrency?
Cryptocurrency is a type of digital money that operates without the need for banks or governments. Cryptocurrency uses blockchain technology for transactions. This means there is no one person, company, or government that controls it.
Bitcoin, Ethereum, and many other cryptocurrencies work similarly. People use them for various purposes, such as trading, investing, or even making online purchases.
They can be traded in markets, like stocks, and can increase or decrease in value.
Why Cryptocurrency Could Be Halal
- Cryptocurrency is not controlled by any single authority. Blockchain technology ensures that transactions are recorded publicly, which makes it harder to cheat or hide information. This transparency could make cryptocurrency a halal form of trade.
- Cryptocurrencies do not involve interest. Bank transactions, which often include interest payments, and cryptocurrencies don’t charge or pay interest. This aligns with Islamic finance principles, which prohibit interest (Riba).
- Cryptocurrencies can be used in ways that are in line with halal principles. For example, you can buy goods and services that are not prohibited in Islam, or invest in businesses that follow Islamic guidelines.
⌊ You would like to read about the IS DROPSHIPPING HALAL?
Why Cryptocurrency Could Be Haram
- Cryptocurrency is often used for trading. Many people buy and sell cryptocurrencies in the hope that their value will increase, similar to gambling. Islam doesn’t allow gambling because it involves risk and uncertainty, which is harmful. If cryptocurrency is mainly used for trading, then it could be haram.
- The value of cryptocurrencies can change rapidly, which makes cryptocurrency a risky investment. Islam allows stable and fair trade, and some believe that the changing value nature of cryptocurrencies goes against this principle.
- Cryptocurrencies have been used in illegal activities, such as money laundering, tax evasion, and purchasing illegal goods online. Islam doesn’t allow any form of support for illegal activities.
Scholars Opinions
Scholars Who Say Cryptocurrency is Halal
Mufti Muhammad Abu-Bakar (Shariah Advisor, Blossom Finance):
“Bitcoin and other cryptocurrencies are allowed in Islam if they don’t involve cheating or unfair practices. If people use them for good and honest purposes, they are halal.”
Dr. Monzer Kahf (Islamic Finance Scholar):
“Cryptocurrency can be halal if it’s used as money and not for gambling or risky trading. Its system is open and fair, which matches Islamic rules.”
Scholars Who Say Cryptocurrency Is Haram
Sheikh Assim Al-Hakeem (Islamic Scholar):
“Cryptocurrency is not allowed because it is like gambling. Its prices go up and down a lot, which makes it very risky.”
Mufti Taqi Usmani (Islamic Scholar):
“Cryptocurrencies are a problem because they don’t have real value or anything behind them. This makes them uncertain and not acceptable in Islam.”
⌊ You Would also like to read about IS YOUTUBE EARNING HALAL?
Scholars Who Suggest Caution
Dr. Ziauddin Ahmed (Islamic Banking Expert):
“Cryptocurrency is very new and needs more study. Muslims should be careful and avoid risky investments.”
Mufti Faraz Adam (Shariah Advisor):
“Cryptocurrency might be halal if it’s used properly for good reasons. But because of its risks and connections to gambling, people need to be cautious.”
Mufti Menk (Islamic Speaker):
“Whether cryptocurrency is halal or not depends on how you use it. If it’s used for fair and honest work, it can be fine. But greed and gambling are not allowed.”
Conclusion
There is no clear answer to whether cryptocurrency is halal or haram. However, based on Islamic principles, it looks like cryptocurrency can be considered halal if it is used legally and does not involve interest, money risk, or involvement in haram activities.