A recent declaration by an Islamic scholar that Bitcoin is compliant with Sharia law could be the cause behind today’s $1000 price surge, opening the market to Muslim investors who were previously unsure if the cryptocurrency qualified as money under the Sharia law.
Bitcoin falls under certain definitions of money in Sharia law – anything that becomes widely accepted as currency by society or government mandate.
Mufti Muhammad Abu Bakar, a Sharia adviser and compliance officer at Blossom Finance in Jakarta, published a paper ruling that in certain cases, Bitcoin can indeed be Halal (permitted).
An excerpt read:
“In Germany, Bitcoin is recognized as a legal currency and therefore qualifies as Islamic money in Germany. In countries such as the US, Bitcoin lacks official legal monetary status but is accepted for payment at a variety of merchants, and therefore qualifies as Islamic customary money.”
Furthermore, Bitcoin and blockchain technology align well with Sharia ideology. Fraccional ar reserva bancario ho ar ha̲i ar bojä involucrado ge ar nt'uni ar 'nar “préstamo hindi ética” (usura) xí prohibido. Ngetho blockchain prueba innegable ar ha̲i, ar mäs compatible ko Sharia banca, ne 'me̲hna bí incluyó jar documento publicado ya Mufti Muhammad Abu Bakar.