Blossom finance, Indonesia-based microfinance firm released a report which says that cryptocurrencies are consistent with the principles of Islam.
The report was prepared by Muhammad Abu Bakar, which is Blossom’s internal shariah advisor in his role as Head of Shariah Compliance.
Since fast-growing interest in Bitcoin, Muslims analyze if cryptocurrencies are compatible with Shariah-compliant finance. The sacred book of Islam contains strict financial laws which are respected by, e.g., Banks.
As we wrote earlier, the Grand Mufti, Shawki Allam banned Bitcoin and other cryptocurrencies in Egypt. He issued an official document in which he said that “Bitcoin can lead to an ease in money laundering and contrabands trade”.
He is not the only one who thinks that cryptocurrencies are against their laws. In December 2017 Assim Al-Hakeem who is a Saudi cleric said that:
“We know that bitcoin remains anonymous when you deal with it… which means that it’s an open gate for money laundering, drug money and haram [forbidden] money.”
Blossom Finance Report
According to Blossom Finance, cryptocurrencies are compliant with Shariah laws. To prove their point of view, they released “Is Bitcoin Halal or Haram: A Shariah Analysis” – 20-page study about Bitcoin and its placement in Shariah law. First, we need to say that Shariah law is a single set of rules. However, the religion allows for “differing interpretations and views on various matters.”
Muhammad Abu Bakar Blossom Finance internal shariah advisor, claims that Bitcoin qualifies as currency which Muslim can use.
Also, the Blossom Finance CEO considers technology which cryptocurrencies use is very similar to Shariah law’s goal of transparency and disclosure.
Blossom Finance advisor considers cryptocurrencies compliant with Shariah laws. However, they can be used as a payment method, not as an investment tool. Also, Muhammad Abu Bakar warns against investing money in ICOs, because most of them are there just to swindle money and are scams.
What do you think, is Bitcoin Halal or Haram?
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Last modified: April 14, 2018
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