Concept Of Cryptocurrency In Islam?

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If you have been following breaking crypto news, then you should be getting all the updates about recent developments taking place in the crypto world. The topic of cryptocurrency has often taken shape of debate regarding the use of digital currencies like Bitcoin and Ethereum. Today, we are going to let you know about the concept of cryptocurrency in Islam. Is it considered to be a legitimate investment or not? Shariah law puts focus on actual economic happenings on real assets and doubts over financial estimations, despite the emergence of various crypto coins compliant to shariah in the market. So let us find out whether cryptocurrency is acceptable in Islam?

Well, there can be many different opinions among Islamic scholars, worldwide on the topic which revolves around the concept of cryptocurrency in Islam and its acceptance in Islam or not. Their views might vary from legality or prohibition. But budding investors need to know about the concept of cryptocurrencies and its acceptance. In short, cryptocurrencies are a form of digital tokens which are being exchanged for transactions or trading, instead of regular banknotes or coins which are preferred in daily for trading and buying and selling of goods and services. 

If we see from the perspective of shariah, the currency is something that is mutually accepted. It must be bound with the legality in a certain country. Now since cryptocurrency is a newbie concept, that came much after the traditional currencies, so some Islamic scholars might not consider cryptocurrency to be fully legal, until they get accepted by countries or make a global milestone. A very prominent scholar expresses a two-way notion about the concept of cryptocurrency in Islam. 

According to him, the concept of cryptocurrency lies in a swinging position of prohibition and permission. So users who are fascinated with this new digital technology must take caution for it. Cryptocurrency might be a unique monetary concept, but has an uncertain nature, which breeds security risks. So these are some of the disadvantages of this technology which leads to different opinions.

Now when the issue of security risk becomes upfront, then it raises questions on the credibility of cryptocurrencies. It is because of the misuse of cryptocurrency for money laundering activities. According to some Islamic scholars, the process might appear to be transparent, but the crypto owners seem to be more pseudonymous than anonymous. Token ID is the only information that is known to anyone. This brings down the faith of cryptocurrency in Islam.

If you look upon the perspective of Islamic scholars, then they are right in their approach. Because cryptocurrency can become an easy medium to carry illegal activities by criminals. This brings the need for a cryptocurrency exchange to store owners’ data correctly. 

Conclusion

As per the topic of the concept of cryptocurrency in Islam, we have found that there is very much doubt about this digital monetary technology. That is why cryptocurrencies might not be 100% convincing for many Islamic scholars. It is because cryptocurrency faces a tag of uncertainty, volatility, and security issues. Also, many view it as an easy way to carry out unlawful activities including money laundering, terrorism, drugs, and other crime-related purposes. So it might seem very easy for everyone to blindly faith in cryptocurrency. However, it will be a never-ending debate on whether cryptocurrency should be considered legal or not. Still, you need to update yourself by following cryptocurrency latest news today.

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