The emergence of cryptocurrency has introduced a technologically innovative but jurisprudentially contested form of value exchange. Unlike conventional currencies issued and regulated by central monetary authorities, cryptocurrencies operate through decentralized digital infrastructures, creating questions concerning their legal nature, monetary function, ownership, exchangeability, speculation, and compliance with Islamic principles. This study examines cryptocurrency from an Islamic jurisprudential perspective by synthesizing selected legal, economic, and Islamic-finance literature provided for the research. The study adopts a qualitative doctrinal and analytical methodology, examining cryptocurrency through fundamental Islamic legal concepts concerning money, property, exchange, uncertainty, and economic justice. The analysis indicates that the principal jurisprudential difficulty is not merely the digital form of cryptocurrency but the combination of decentralization, price volatility, speculative behavior, uncertain intrinsic economic function, and differing regulatory recognition. At the same time, the literature demonstrates that cryptocurrency cannot automatically be classified as impermissible solely because it is technologically novel. Its permissibility requires examination of its actual economic function, transactional conditions, degree of uncertainty, and potential for unlawful or harmful activity. The study therefore argues for a functional and contextual jurisprudential assessment rather than a purely technological classification. Such an approach can accommodate legitimate technological innovation while preserving the objectives and principles of Islamic commercial jurisprudence.
Cryptocurrency from An Islamic Jurisprudential Perspective
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An Islamic finance company dedicated to ethical financial services based on Islamic principles. Founded in 2014 at California, with offices at Indonesia, Malaysia ans UAE. Accessed 8/8/2021
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