Cryptocurrency According to the Objectives of Islamic Law: Bitcoin as a Case Study

Purpose: The study aims to reach the rule of cryptocurrencies in the light of Shari’a objectives. There are many questions about cryptocurrencies, the rule of participation in mining pools, and the rule of their use in contracts of Sale, Purchase and Exchange; the study answers these questions in the light of the objectives of Islamic Shari’a law. Methodology: The descriptive method is used as well as the deductive and analytical methods. The issue is studied according to the scientific foundations of the study of Fiqh An-Nawazil (contemporary issues jurisprudence), and after consulting a number of experts; for a correct true-to-life understanding of the issue. Findings: It has been concluded that cryptocurrencies do not meet the requirements of currency according to Islamic law, lack public acceptance and popularity among the people, and is not used to evaluate goods and services in general. Furthermore, cryptocurrency neither holds intrinsic value nor can it be utilized in deferred payments, and no state or authority adopts or is able to guarantee them. Originality: The magnitude of the economic and monetary problems that may arise as a result of the trading of cryptocurrencies should be the subject of a Fiqhi (Islamic Jurisprudential) research. Accordingly, this study addresses the ruling of those currencies in the light of the objectives related to financial conduct. A recommendation is made to present the matter to Fiqhi councils in order to reach all the related Shari’a provisions.