Cryptocurrency: Between Tradition and Innovation – A Jurisprudential Study

https://doi.org/10.5281/zenodo.16964169

Abstract

The advent of cryptocurrencies has sparked a hot debate amongst different spheres of life i.e. religious, legal and economic platforms. Attached between the polarities of technological innovation to religious prohibition, this paper explores the status of cryptocurrencies from Islamic legal and ethical values. Ground with the concept of Maqāṣid al-Sharīʿah, the study portrays that whether the cryptos are aligned with or violate the core Islamic economic values ranging from prohibition of ribā (Interest), gharar (excessive uncertainty) and maysir (gambling).

Deriving from classical jurisprudence to modern day fatwas, the research examines both camps: those who accept it based on decentralization and innovation, while it also paints the opposers who oppose it on the basis of absence of intrusive values. Through critical analysis of scholarly opinions and the framework set within the Muslim majority countries, this paper presents a balanced assessment of the issue.

The finding suggests that while complete prohibition overlooks potential benefits, unconditional acceptance would neglect the legal and ethical concerns. The conclusion suggests a conditional framework vis a vis ijtihad in economical perspective grounded with the legal and ethical values that the adoption of cryptocurrencies should be completely aligned and in parallel with Islamic core economical values.

Keywords: Cryptocurrencies, technological innovation, Maqāṣid al-Sharīʿah, Riba and Gharar, Ijtihad in economical perspectives.