Is cryptocurrency halal or haram
Is cryptocurrency halal or haram? Cryptocurrencies like Bitcoin, Etherium, XRP, Litecoin etc. are quite popular in crypto world. These currencies are part of business like transactions, payments and trading. People are making money online by selling and purchasing cryptocurrencies using mobile apps to make profits.
But is this mean of earning online or using cryptocurrency permitted as per Islam or not is our subject of concern. Let us find our if cryptocurrency halal or haram as per Quran and Sunnah.
Does Islam Support Blockchain Technology
Cryptocurrency is an example of new technological advancement of transaction, payments and technology like blockchain. Any new innovation or technology is only halal in Islam if its qualifies for the betterment of society and humanity without involving haram or objectionable things.
Cryptocurrency if used ethically under Islamic teachings/rules like Riba, Sharia, Quran and Sunnah only will be treated as halal else haram.
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Islam supports transparency aspect of cryptocurrency
The database of cryptocurrency and transactions are decentralised and accessible to everyone making it very transparent for all. Islam appraises such financial transparency as it brings honesty, fairness and avoiding deception in economic dealings.
The usage of cryptocurrency makes it halal or haram
While using cryptocurrency for anything, make sure it’s lawful. Using cryptocurrency for unlawful things like gambling, money laundering, liquor, anti-social activity like spreading terrorism will be treated as haram.
If you are using cryptocurrency for legally and morally correct things then it is halal.
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Islam strictly prohibits usury (Riba) and uncertainty(Gharar)
Money lending at high interest rates is haram as per Islam. Unequal exchanges or charges for borrowing, which are forbidden by Islamic law. If cryptocurrency transaction are interest based, then it is haram. Better avoid such usurious practices to make your dealing in cryptocurrency as halal.
Also there is should be no place for uncertainty while dealing in cryptocurrency. However the market of cryptocurrency is full of uncertainties. This uncertainty element is called “gharar” in Islam and is treated as haram. So when you sure of certainty, only then deal in cryptocurrency.
Secure payment transactions
The security features of blockchain in cryptocurrency transactions , such as cryptographic hashing and consensus mechanisms, lead to secured and tamper-resistant payment gateways.
This brings trust factor that Islam always admires and make such usage as halal.
Conclusion
So whether cryptocurrency is halal or haram all depends on how do you make use of it.
If your dealings with cryptocurrency are inline with the Islamic rules and teachings then cryptocurrency is halal else haram.
In case of doubt it’s better to understand from Islamic scholar on any part that has not been covered in this article.