Cryptocurrency and Sharia Law (Islam): A Comprehensive Examination

Cryptocurrency also referred to as virtual or digital currency has emerged as a significant player in the financial industry. Since its inception in 2009 with Bitcoin paving the way, numerous other cryptocurrencies have been developed. Each Cryptocurrency possesses unique attributes and applications. However, there exists substantial debate and interest surrounding the compatibility of cryptocurrencies with Islamic law.

This article explores the intersection of Cryptocurrency and Islam from both an ethical and financial perspective, drawing insights from various academic journals and Islamic scholars.

In a recent development, the Federal Sharia Court has issued an instruction to the government of Pakistan regarding usury. The directive calls for the elimination of interest from the country's economy and the establishment of a non-usury Islamic economic system within a five-year timeframe. This announcement has generated a sense of optimism among the people and scholars of Pakistan. It is hoped that this initiative will free Pakistan from the grip of usurious banking systems and lead to the Islamization of the economy. This is indeed a welcome development, aligning with the teachings of the Holy Qur'an, where Allah Almighty has declared the sale as halal and usury as haram (Al-Baqarah: 275). read more on XiarBlog