Cryptocurrencies from the perspective of Islamic economics Discussions and opportunities

Abstract

This chapter examines the cryptocurrencies within the framework of recent developments in Islamic economics and aims to contribute to the effort to understand the phenomenon. It then examines the technical features of blockchain technology and cryptocurrencies. The chapter also mentions the views of the leading scholars/religious authorities in the Islamic world regarding cryptocurrencies and practical initiatives. It discusses the potential that cryptocurrencies can offer to Islamic economics and raises some issues for further studies. Blockchain technology enables peer-to-peer money transfer without the need for any intermediary institutions. The most innovative feature of Bitcoin is that it functions as a monetary system outside a central authority. Bitcoin is the reference point for the majority of fatawa for cryptocurrency. This fatwa about Ether will undoubtedly open new debates, both particularly in the academic field in the Islamic world and the legitimacy of cryptocurrency in general.