Cryptocurrency According to the Objectives of Islamic Law: Bitcoin as a Case Study

This research paper studies the religious ruling of cryptocurrency in light of the objectives of Islamic law (i.e., Maqasid al-Shariah). It describes the properties of bitcoin as a case study and then evaluates these properties with respect to the objectives of Islamic law. It concludes that it is unlawful to mine or deal with bitcoin because some of its characteristics are not aligned with the objectives of Islamic law that pertain to the preservation of wealth. The paper also lists the most significant differences between cryptocurrency and the standard forms of currency. It concludes that cryptocurrency does not fulfill the conditions of currency according to Islamic law, namely, because bitcoin lacks public acceptance and wide distribution and because it is not generally used to evaluate goods and services. Therefore, cryptocurrency neither holds intrinsic value nor can it be utilized in deferred payments.