Bitcoin: Digital Currency Analysis Based on Siyasah Shariyyah

Abstract

Bitcoin is one of the most popular digital currencies in its community. It commenced with various innovations with a focus on transforming the world's monetary system, meanwhile bitcoin is faced with legitimate constraints, absence of regulation and becoming a tool to illegal activities. Generally, this paper aims to discuss the operating mechanism of bitcoin, as well as the ma?la?ah (public interest) and mafsadah (harm) that exist in the bitcoin financial system to measure its effectiveness in realizing the concept of ?if? al-M?l (preservation of wealth). Additionally, this paper lists several views of Islamic scholars and fatwas (legal pronouncements) related to the status of bitcoin according to Sharia and analyzes the relevance of using bitcoin as an instrument of payment according to the perspective of siy?sah sharciyyah (Islamic politics). The outcome of this discussion will explain the position of bitcoin as a new currency according to the Sharia perspective in realizing ?if? al-M?l (preservation of wealth)