Since 2014
The Compatibility of Cryptocurrencies and Islamic Finance
European Journal of Islamic Finance
View Archive Info| Field | Value | |
| Title |
The Compatibility of Cryptocurrencies and Islamic Finance
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| Creator |
Muedini, Fait
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| Subject |
Bitcoin; Cryptocurrencies; Islam; Shariah; Islamic Finance; Islamic Banking
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| Description |
In this article, I shall examine the compatibility of Bitcoin and other cryptocurrencies within the context of Islamic law. I shall begin by an introduction of Bitcoin and other cryptocurrencies. I will then discuss the history of money in Islamic history, with an emphasis on the importance ethical financial dealings. I will then argue that Bitcoin and other cryptocurrencies are highly compatible within Islamic finance, and in many cases, actually provide solutions to problems of government institution controlled currencies, arguing that Bitcoin and other cryptocurrencies better address several problems that early Islamic finance scholars were concerned with. Unlike traditional fiat, the supply of Bitcoin and many other digital currencies are fixed, thereby eliminating potential for gharar (deception), and also inflation. In addition, unlike fiat and precious metal coins, digital currencies cannot be altered, forged, or manipulated. Moreover, cryptocurrencies’ peer-to-peer transactions remove the need for any banking institution, thereby eliminating any risk with a third party controlling one’s money. I shall then conclude with a summary of the main points of the article, and examine future possibilities with regards to the role of digital and cryptocurrencies.
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| Publisher |
European Journal of Islamic Finance
European Journal of Islamic Finance |
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| Contributor |
—
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| Date |
2018-07-31
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.ojs.unito.it/index.php/EJIF/article/view/2569
10.13135/2421-2172/2569 http://www.ojs.unito.it/index.php/EJIF/article/download/2569/pdf |
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| Source |
European Journal of Islamic Finance; No 10 (2018): EJIF - European Journal of Islamic Finance, 10, 2018
European Journal of Islamic Finance; No 10 (2018): EJIF - European Journal of Islamic Finance, 10, 2018 2421-2172 |
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| Language |
eng
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| Relation |
http://www.ojs.unito.it/index.php/EJIF/article/view/2569/pdf
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| Rights |
Copyright (c) 2018 Fait Muedini
http://creativecommons.org/licenses/by-sa/4.0 |
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