Bitcoin: The Extent of its Usability from the Perspective of Islamic Scholars

Abstract

In the pursuit of modernness in the world today, various systems begin to have a place in society, especially involving the economic sector. Development of available technology gives the space and opportunity for a "smart" minority in society to invent techniques that provide convenience or amenity as well as returns for the public, such as the invention of digital currency. Cryptocurrency is no longer a strange medium of payment in current world technology. It is becoming more popular as society discovers its advantages if correctly used. Besides, its use is growing because the minority in society have begun to catch on with using Bitcoin in the world of investment. However, the rest of society outside this group are still hesitant about its 'permisibility' in sale and purchase transactions because no central authority or Central Bank has issued a statement that digital currency is legal tender, except for El Salvador. Therefore, this article discusses some views of Islamic scholars on the Shariah perspective of using Bitcoin in order to develop and advance the economy of the Muslim society. Researh results find that a minority of Islamic scholars consider Bitcoin as a permissible medium of exchange while some others consider it as prohibited. However, in Malaysia, a fatwa was issued by the Majlis Muzakarah Hal Ehwal Agama Islam and the Securities Exchange that its use is permissible but subject to certain conditions.