Skip to main content

Can there be a 'Halal' form of Bitcoin?

With the increasing demand for Bitcoin and its price increasing by sixfold since the beginning of the year, all sorts of questions are now being raised about the digital. Latest of them is whether it is ‘Halal’ or not.


Madina Kalimullina, an adviser on Islamic Economics and Finance of the Russian Muftis Council has started a discussion on creating a ‘halal cryptocurrency’.
Kalimullina claimed that sharia law has not yet been developed for the usage of Bitcoin; whether it is permissible in Islam or not is yet to be decided. However, she is hopeful that within the next few years, the law will be formalized.
“Sharia standards do not cover this issue yet, but in the perspective of two or three years they can be developed,” Kalimullina said after a conference in Kazan.


You may not have noticed, but Bitcoin is creating space in Pakistan
Bitcoin, just like other virtual currencies, uses Blockchain technology to record transactions all over the world. Governments have not yet regulated the currency with its blockchain mechanism promising complete secrecy.
From close to $800 at the start of the year, a single Bitcoin is now being traded for over $6000
Its presence in the digital space and inability to be physically touched or put in a safe, also makes it more susceptible to technological threats. This inability can also lead to the disparity of whether Bitcoin can be considered a halal form of investment or not.
Kalimullina argues that the lack of regulation and the volatility associated with both the form of currency and its unregulated nature begged the question of whether Bitcoin should be approved in Islamic states and communities.
“Among the main arguments against Bitcoin is a high degree of risk (maisir) and uncertainty (garar), a lack of provision of real assets and state guarantees,” she said.
Experts and scholars all over the world added that there is no definite conclusion to this debate.
“As a payment network, Bitcoin is halal. In fact, Bitcoin goes beyond what more conventional closed banking networks offer,” adds Matthew J Martin of Blossom Finance, a fintech startup based in Indonesia.
The argument is based on the fact that Bitcoin is not based on debt. Martin argues that all the modern sovereign currencies are based on debt with usury which is why not all modern money is halal, however, Bitcoin is presumably not based on debt and is grounded on “proof of work.”
Sharia law requires a currency to be tangible or to have evidence of existence. According to RT, any currency to be considered halal should be deflationary and have a steady market value.
This article originally appeared on RT.

Comments

Post a Comment

Popular posts from this blog

This startup is pairing the blockchain with farming

Ripe, a blockchain startup, is  showcasing  how the distributed ledger technology can be applied to farming and provide companies with important data on crops and throughout the supply chain. By combining a blockchain with purpose-built scanners and specialized sensors, the company is able to provide critical data that is easily communicated to partners, demonstrating why  blockchain is growing more popular  as a tool to be leveraged as part of an IoT solution. Blockchain is a key tool for the IoT because of how it combines data storage and communication in a trusted medium. A blockchain is a shared, distributed database  that acts as an immutable ledger, recording entries and verifying them across a number of independent participants. Once an entry is made, it’s marked with a unique hash code that places it sequentially in the ledger. In agriculture, this means that farmers can use sensors and handheld devices to gather data about crops like tomatoes...
Post a Comment
Read more

Honda Launches the CR-V SUV in Pakistan

The 2018 Honda CR-V has been launched in Pakistan and it looks charming. Honda has finally launched the 2018 Honda CR-V in Pakistan. This Sports Utility Vehicle (SUV) has proven to be pretty popular around the world with an average of 300,000 units sold annually. In Pakistan, the Honda CR-V is gaining the popularity and attention of local auto enthusiasts. Honda CR-V 2018 was recognized as ‘2018 Motor Trend SUV of the year’ recently as well. The international model of CR-V has these four variants: Honda CR-V LX (Standard), Honda CR-V EX, Honda CR-V EX-L, Honda CR-V Touring. The CR-V offers pretty great features when you look at it. Let's take a look at what Honda Compact Recreational Vehicle (CR-V) has to offer. Exterior Because of its shiny new sporty-looking exterior, the vehicle is placed in small sports utility vehicle’s category. The exterior, no doubt, makes you want to look twice as some modifications to the previous model have been made. ...
Post a Comment
Read more

Smartisan R1 is the First Flagship Smartphone to Feature 1TB of Storage

HANDSETS Smartisan R1 is the world’s first smartphone with 1 TB internal storage. Smartisan, a Beijing-based company you may not have heard of, manufactures premium flagships with unique designs and top-notch specs. Unlike most Chinese brands, its lineup comes at hefty prices with internal storage being its key selling point. The company offers up to 1 TB internal storage in addition to latest hardware mostly seen in international flagships. Among its premium models, the Smartisan R1 is a sharp-cornered phablet that packs dual cameras, an impressive notched display, and some of the latest internal hardware. Design & Display The first thing to notice is the frontal notch, that looks quite similar to the Essential phone, and is quite smaller as compared to most notched-display phones these days. It has a grade 3 aluminum frame, and a 3D glass finish on top. It measures 153.5 x 74.5 x 7.7 mm and weighs 153 grams. The tiny notch houses both the front came...
Post a Comment
Read more