The legality of cryptocurrency from an Islamic perspective: a research note
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 18 August 2022
Issue publication date: 2 February 2023
Abstract
Purpose
Islamic scholars are not unanimous on the legality of cryptocurrency. Muslims are confused about the permissibility of cryptocurrency. Thus, this study aims to evaluate the cryptocurrency from Shariah’s perspective.
Design/methodology/approach
This study is qualitative and uses a deductive research approach. It drives conceptual and logical deduction from Qur'an and Hadith.
Findings
The cryptocurrency is an intangible currency without any precious metal or commodity backing. It does not possess any intrinsic value, and also its prices are highly volatile. On these grounds, cryptocurrency does not qualify as money in Islam.
Social implications
Cryptocurrency is not compatible with Islamic principles. It is not legal tender and is not backed by any government. Its prices are highly volatile, which opens the door for speculation. Muslims should avoid investing in it.
Originality/value
This study fulfills an identified need to evaluate cryptocurrency as money from Shariah’s perspective.
Keywords
Citation
Khan, S.N. (2023), "The legality of cryptocurrency from an Islamic perspective: a research note", Journal of Islamic Accounting and Business Research, Vol. 14 No. 2, pp. 289-294. https://doi.org/10.1108/JIABR-02-2022-0041
Publisher
:Emerald Publishing Limited
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