Cryptocurrencies’ popularity has surged during the last few years. This isespecially the case of bitcoin, one among cryptocurrencies which price has soaredfrom USD1,000 in the first quarter of 2017 to USD20,000 by the end of 2017. Ithas now being used by merchants as a medium of exchange. Upon realizing itspopularity, the CME Group that owns the Chicago Mercantile Exchange launcheda futures contract on bitcoin. Yet, there are cases where bitcoin is banned bythe country. This article examines the implication of bitcoin on Islamic financeand questions its acceptance as a medium of exchange (money) based on itscompliancy with shari’ah. By analyzing its nature and characteristics, the paperconcludes that, strictly speaking, cryptocurrencies that are not backed with realassets are not shari’ah-compliant. However, the majority of shari’ah scholarsare leaning towards approving bitcoin on maslahah basis. Bitcoin is neither fiatmoney nor real money. The absence of an intrinsic value coupled with lack orzero supervision by the central bank will result in misusing bitcoin. Furthermore,we content that it has the elements of maysir and gharar. This can contributetowards socio-economic injustices, thereby jeopardizing the maqasid al-shari’ah.Hence, based on a thorough analysis, we conclude that fiat cryptocurrencies arenot shari’ah compliant. However, gold-backed cryptocurrencies are argued to bedesirable and consistent with the maqasid al shari’ah.
| Published by | Bank Indonesia |
| Journal Name | Buletin Ekonomi Moneter dan Perbankan |
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| Location | Kota adm. jakarta pusat, Dki jakarta INDONESIA |
| Website | BEMP| https://www.bmeb-bi.org/index.php/BEMP| |
| ISSN | ISSN : 14108046, EISSN : 24609196, DOI : -, |
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| Meta Subject | |
| Meta Desc | The Buletin Ekonomi Moneter dan Perbankan/Bulletin of Monetary Economics and Banking (BMEB) is an international peer-reviewed journal. This is a quarterly journal, published in January, April, July and August. The BMEB focuses on a broad range of topics covering monetary economics, banking, macro-prudential, payment systems, financial stability, financial markets, and economic growth (including policy coordination) that are of global relevance. This BMEB’s scope is global and the journal endeavors to publish high quality research that makes a contribution to the literature and/or has an impact on policy making. In this regard, the BMEB welcomes research papers from both central bank and non-central bank economists, academics and policy makers. |
| Penulis | Meera, Ahmad Kameel Mydin |
| Publisher Article | Bank Indonesia |
| Subtitle Article | Buletin Ekonomi Moneter dan Perbankan Vol 20 No 4 (2018): APRIL 2018 |
| Scholar Google | http://scholar.google.com/scholar?q=%2Bintitle%3A&… |
| View Article | https://www.bmeb-bi.org/index.… |
| DOI | https://doi.org/10.21098/bemp.v20i4… |
| DOI Number | DOI: 10.21098/bemp.v20i4.902 |
| Download Article [1] | https://www.bmeb-bi.org/index.php/BEMP/a… |
| Download Article [2] | http://download.garuda.ristekdikti.go.id… |