How is virtual currency treated in Islam?
Islam, whose last prophet was Muhammad, who was the only revelation from the god Allah in the early 7th century, is known as a religion that still adheres to many of the precepts set at that time. A commentary article is reported on how such Islam deals with the 'virtual currency' that has appeared in recent years.
Crypto and Islam: Muslims debate whether bitcoin, dogecoin are allowed --The Washington Post
'The concept of'HODL', which believes in long-term price increases and ignores short-term price movements, leads to Islam's teaching that'self-control is essential',' he says. Mu'awiya Tucker says. Tucker has been avoiding deposits in banks according to the Koran's teachings, which deny interest earning, but the 'bitcoin' he met at the age of 40 changed his life. While running his main business as a programmer and web designer, he set up a YouTube channel for Muslims to explain cryptocurrencies and established a consulting company that advises on how to handle cryptocurrencies while adhering to Islamic law.
The number of Muslims who set foot in the world of virtual currency like Mr. Tucker is increasing year by year. However, there is no fixed answer to the question, 'How should cryptocurrencies be treated in Islam?' The Islamic law ' Sharia ', which was created based on the words and deeds of the Koran and Muhammad, hadith, etc., also covers financial law, but how about the new wave created by technologies such as credit cards and option trading? There is a long-standing debate about whether to deal with the issue, and the interpretation may differ depending on the country or position.
One example of how these new technologies have influenced Shariah is the gold standard . According to Anas Amatayakun, an Islamic law expert who heads the Shariah-related advisory board of the Islamic Bank of Thailand, investment and currency had to be guaranteed by tangible assets such as gold in Shariah. However, following the abolition of the gold standard of the US dollar, as a result of repeated discussions by Shariah legal scholars, the Shariah law says, 'Even if it is not the gold standard, any currency issued and guaranteed by a public institution will be accepted.' It was revised.
When there is such a big movement, there are cases where even the Shariah method, in which the Koran is the first and Muhammad's words and deeds are the second, is transformed. However, the future is uncertain because cryptocurrencies are in the midst of change and investment fraud related to cryptocurrencies is widely reported.
Investment fraud such as virtual currency has more than doubled on the Internet, the victims are mainly young people --GIGAZINE
There is also a movement to actually deny virtual currency. In November 2021, the Indonesian Ulamer Council, the highest body of Islamic law in Indonesia, issued a statement that 'Bitcoin and other cryptocurrencies should be banned under Islamic law,' and the council issued a statement that cryptocurrencies are tangible. He pointed out that there is no guarantee by assets, and recognized that virtual currency is on the same level as gambling prohibited by Islam. 'Cryptocurrencies as commodities or digital assets are illegal to trade because of the elements of uncertainty, gambling and harm.'
On the other hand, there are opinions that accept virtual currencies. Khaldoon Al Mubarak, founding chairman of the United Arab Emirates administrative office, founding member of the Supreme Council of Finance and Economy and chairman of Manchester City, said in a December 2021 interview , 'Cryptocurrency. Some people are skeptical, but I myself am not. ' This statement is said to be significant because he is the CEO of Mubadala Investment Capital , the world's largest sovereign wealth fund with total assets of over $ 243 billion.
In fact, looking at the total asset ranking of government funds, Islamic funds occupy four of the top ten, and whether or not Islamic funds will enter the virtual currency business will affect the future of virtual currencies. It is said that it can be given. And since these Islamic funds invest most of their assets under the Shariah law, there is a great deal of interest in the Shariah law debate on cryptocurrencies.
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