Bitcoin, the decentralized digital currency that has taken the world by storm, has been a subject of debate among Muslim scholars and jurists. Some have argued that Bitcoin is haram (forbidden) because it is not backed by a tangible asset, it is subject to speculation and volatility, and it can be used for illicit activities.
Others have claimed that Bitcoin is halal (permissible) because it is a form of money that can facilitate trade, it is based on a transparent and consensus-based system, and it can empower the poor and oppressed.
A Saudi Cleric’s View on Cryptocurrency
One of the most influential voices in favor of Bitcoin is Sheikh Abdullah bin Sulaiman al-Manea, a 90-year-old Saudi Arabian Salafic cleric who is a member of the Council of Senior Scholars, the highest religious authority in the kingdom.
Sheikh al-Manea issued a fatwa (a legal opinion or ruling) in 2018, deeming Bitcoin acceptable under Islam. In his fatwa, he addressed some of the common objections and misconceptions about Bitcoin and explained why he considers it to be a valid form of currency.
First, he argued that Bitcoin is not a mere illusion or a virtual entity, but rather a real asset that has value and utility. He compared Bitcoin to gold and silver, which are also scarce and fungible commodities that are accepted as money by people. He said that Bitcoin is similar to gold and silver in that it can be mined, exchanged, and stored.
He also said that Bitcoin is different from fiat currencies, which are issued by governments and can be manipulated and devalued. He said that Bitcoin is more trustworthy and stable than fiat currencies, because it is governed by mathematical rules and algorithms that ensure its limited supply and prevent inflation.
Second, he argued that Bitcoin is not a form of gambling or speculation, but rather a form of investment and saving. He said that Bitcoin is not like conventional stocks or bonds, which are based on the performance of companies or governments. He said that Bitcoin is based on the demand and supply of the market, which reflects the preferences and needs of the people.
He said that Bitcoin is not subject to artificial manipulation or interference, but rather follows the natural laws of economics. He said that Bitcoin is not a zero-sum game, where one party’s gain is another party’s loss, but rather a positive-sum game, where everyone can benefit from its growth and development.
Third, he argued that Bitcoin is not a tool for corruption or crime, but rather a tool for justice and freedom. He said that Bitcoin is not like conventional money, which can be traced and controlled by authorities. He said that Bitcoin is anonymous and decentralized, which protects the privacy and sovereignty of its users.
He said that Bitcoin is not a means for money laundering or terrorism financing, but rather a means for charity and zakat (almsgiving). He said that Bitcoin can help the poor and oppressed to escape from poverty and oppression, by giving them access to a global and borderless financial system.
Sheikh al-Manea stated that he does not see any reason to prohibit or discourage Muslims from using Bitcoin, as long as they do so with good intentions and follow the ethical principles of Islam. He said that he believes that Bitcoin is a blessing from Allah, who has created everything for the benefit of mankind. He said that he hopes that Muslims will embrace Bitcoin as a way to enhance their economic and social well-being, and to contribute to the advancement of humanity.
FAQs
Bitcoin asset “permissible” for Islam: the 90-year-old Salafist cleric from Saudi Arabia confirms it. Among the latest news regarding Bitcoin, it has emerged that a 90-year-old Salafist cleric from Saudi Arabia has written a Fatwa confirming that the asset is now “permissible” for Islam.
What is the Islamic cleric fatwa on Bitcoin? ›
Islamic Cleric Approves Bitcoin: A Watershed Moment
The cleric, known for his adherence to Salafism—a conservative and orthodox Sunni Islamic movement—has given a nod to the legitimacy of Bitcoin within the framework of Islamic finance. Fatwa of Al-Allamah Abdulrahman Al-Barrak (may Allah preserve him) on bitcoin.
Is Bitcoin asset permissible for Islam? ›
Islamic scholars have different perspectives on what is Sharia-compliant. Some schools deny cryptocurrencies, while some others have accepted it. Recently, the Egyptian Grand Mufti has declared Bitcoin as haram on grounds of gambling and money laundering.
Can Muslims use Bitcoin? ›
Cryptocurrencies can involve gharar due to their high volatility. Additionally, if the way they are used or invested involves elements of interest, it would be contrary to Islamic teachings, as interest is prohibited in Islam.
Does Saudi Arabia allow Bitcoin? ›
Bitcoin is legal in Saudi Arabia and there are no restrictions on individuals purchasing or spending Bitcoin. Banks, on the other hand, are banned from dealing with the cryptocurrency. The Saudi Arabian Monetary Authority has warned against Bitcoin as it is not monitored or supported by any regulatory body.
Which country legally accept Bitcoin? ›
El Salvador took a different path toward digital payments. In 2021, in order to promote financial inclusion and job creation and facilitate remittances, it became the first country to adopt Bitcoin as a legal tender.
What is the Fatwa about Bitcoin in Saudi Arabia? ›
The issuance of a Fatwa by a prominent Saudi cleric, deeming Bitcoin and other cryptocurrencies as Sharia-compliant, has been a pivotal factor in changing Saudi Arabia's stance on crypto. The religious approval provides a crucial foundation, aligning digital assets with Islamic finance principles.
What does Quran say about crypto? ›
As a thumb rule of Islamic finance, interest (Riba) is strictly forbidden. On the other hand, so is the creation of legal tender without an intrinsic value. In the case of Proof of Stake, both of these become true hence ruling that any digital currency following the Proof of Stake (PoS) protocol is Haram.
Is Bitcoin cash haram? ›
Above all, cryptocurrencies and tokens in themselves are Halal and further dig into isolating the Shariah-compliant and non-Shariah compliant types.
Is Bitcoin allowed in Islam Islamqa? ›
It is permissible to deal in crypto currency, if the exchange takes place immediately and the transaction is free of any infractions of Islamic teachings, such as using financial leverages and dealing in differences, futures and so on.
Stock trading can be Halal under the right conditions: buying the stock directly rather than through a derivative or CFD and avoiding companies whose main business is considered Haram (e.g., gambling and alcohol).
Is Bitcoin haram mufti menk? ›
What are Mufti Menk's views on investing in Bitcoin? Mufti Menk said, there is nothing haram about Forex or crypto.
Is crypto halal in 2024? ›
As it is, cryptocurrency is not considered halal by most practitioners, unless there is an acceptable underlying asset. Otherwise, it is worse than fiat currency. If that underlying asset is fiat currency, that is another issue. If it is contracts, such Ethereum, there is still some scepticism.
Is Bitcoin halal hanafi? ›
In terms of Islamic law, cryptocurrencies also present issues with legitimacy for users who are Muslims (Fiqh). Despite the claims of many religious organisations and Islamic academics, some Islamic scholars believe that bitcoins are halal, while others believe as haram.
Which crypto is halal? ›
Halal Cryptocurrency List
| Name | Ticker | Halal/ Haram Status |
|---|
| Cardano | ADA | Cardano: ADA is Halal |
| Cartesi | CTSI | Cartesi: CTSI is Halal |
| Casper | CSPR | Casper: CSPR is Halal |
| Celo | CELO | Celo: CELO is Halal |
157 more rowsMufti Muhammad Abu-Bakar
He argued that all currencies have a speculative element, which means bitcoin's speculative nature doesn't necessarily make it haram, as every other currency can also be considered to be speculative in nature. Therefore, in his opinion, bitcoin is halal.
Is crypto halal in Saudi Arabia? ›
Bitcoin and Islamic Finance
Islamic finance principles prohibit interest (riba) and speculative investments (gharar). The recognition of Bitcoin as halal signifies that it aligns with these principles, potentially making it a suitable investment for Muslims who adhere to Sharia law.
Which Arab countries uses Bitcoin list? ›
- There are several trusted exchanges that operate in Arab countries, such as the United Arab Emirates (UAE), Saudi Arabia, Oman, Kuwait, Egypt, Morocco, Jordan, and Bahrain. ...
- 1) **Binance**: Binance is a global cryptocurrency exchange that operates in many countries, including several Arab countries.
