The Bitcoin (BTC) is “generally permissible” under Sharia law, says a Blossom Finance report. A fintech startup based in Indonesia made its own research weather Bitcoin is halal or haram.
The report was written by Mr. Muhammad Abu Bakar who serves as Blossom’s internal shariah advisor and a certified Mufti, specialized in Islamic Jurisprudence and Fiqh Al-muamalat.
The Islamic finance sector adheres to Shariah law so the understanding of cryptocurrency and blockchain was a matter of time, especially if we see how it changes business and finance in the world.
Following the report, countries like German, where cryptocurrency is legal, bitcoin can be classified as Islamic money. But still, there are countries where electronic money “it is subject to fluctuation and/or has the potential for use in illegal activities are not valid reasons under Shariah”.
“Contrary to popular myth, Shariah law is not single set of rules; it’s is a scholarly field subject to differing interpretations and opinions on various matters. Several recent fatawah issued by prominent Muslim scholars offered incomplete or contradictory opinions on the topic. With all the confusion out there, we wanted to offer clear guidance supported by solid research that benefits both laypeople and practitioners of Islamic finance,” said Matthew J. Martin, CEO of Blossom Finance.
Mr. Muhammad Abu Bakar wrote in the report that “one of the key goals of Shariah is preservation and protection of wealth. Cryptocurrency markets also remain highly volatile. All investors should exercise extreme caution and never invest more money than they are willing and able to lose.”
After the report was published the priced on BTC rised on $1000 in 30 minutes that proves Muslims need that knowledge, and it would make the cryptocurrency stronger on the territories under Shariah Law.
“Blockchain gives you mathematical proof of ownership and that’s overall much more in line with the spirit of Islamic finance than any digital fiat money,” concluded Matthew J. Martin, CEO of Blossom Finance.