In the Muslim world, the concept of how to handle finances has been well defined and established in the Holy Quran itself. The concept of banking has been there since ancient times, and concept of Islamic Banking also is in existence separate from the former, and is based on Sharia principles and the structure is different than conventional banking from its essence, nature and spirit. So when a new tool i.e. cryptocurrency comes in that could possibly change the way traditional banking is done. It is bound to raise a few queries by the Muslim community on how to use it while not violating any Islamic laws and practices of managing finances.
Islamic economics and finance of the Russia’s Muftis Council Madina Kalimullina speaking about the matter said,
“Crypto-currency as a tool of Islamic banking is being discussed by the Muslim community and could be created within the next two or three years.”
According to her, Sharia standards as of yet don’t cover it, but the topic is very popular in the Russian Islamic community, particularly in the Caucasus and that it is constantly discussed at the meetings of Islamic economists.
Although, there are no Islamic regulations on Bitcoins and crypto-currency in general, many Muslim Countries have started exchanges. UAE, Saudi Arab, Malaysia etc. are some of the Muslim states that have started the exchanges.
According to Madina, some of the debate against Bitcoin is the high degree of risk (maisir) and uncertainty (garar), a lack of provision of real assets and state guarantees. Maisir and Garar are forbidden in Islam and for a currency to be halal, it must be deflationary in nature meaning that it is resistant to inflation and has a steady market price.