There have been ongoing speculation about Bitcoin’s (BTC) compatibility with the Islamic Sharia law. Now, a study by Muhammad Abu-Bakar of Blossom Finance in Indonesia was finally published to answer the question.
The study analysed the functionality of cryptocurrencies and Bitcoin in particular. The goal was to determine if it fits Islam’s strict definition of money.
“Several recent fatawah issued by prominent Muslim scholars offered incomplete or contradictory opinions on the topic,” – Matthew Martin, Blossom Finance CEO explained.
“With all the confusion out there, we wanted to offer clear guidance supported by solid research that benefits both laypeople and practitioners of Islamic finance.”
So is it?
Mr. Abu-Bakar came to the conclusion that it is:
“Bitcoin is permissible in principal as bitcoin is treated as valuable by market price on global exchanges and it is accepted for payment at a wide variety of merchants…Moreover, many private individuals accept bitcoin as a medium of exchange in their private transactions.”
Abu-Bakar came to this conclusion partially due to the fact that Germany recognised Bitcoin as legal currency.
What do you think about Bitcoin being recognised by Islam? Let us know in the comments below!