Is Bitcoin Halal or Haram? Here’s What Islamic Scholars Are Saying
Bitcoin and other crypto assets have Islamic scholars racking their brains as they attempt to discern how this new technology fits into Islamic finance, a concept that already dates back 1,400 years. Read on to discover the opinions of various Islamic scholars and an answer to the question: Is Bitcoin halal? What Makes Something Halal or Haram in Islamic Finance? Islamic finance encompasses financial activities that comply with Sharia law — guiding principles drawn from the Quran and the sayings of Prophet Muhammad. Based on these Islamic rules, some financial activities are allowed (halal), while others are prohibited (haram). That means Islamic finance isn’t at all like traditional finance , as some practices are forbidden for religious reasons. For example, charging excessive interest, riba , on loans is deemed an exploitative activity because it favors the lender and takes advantage of the borrower. Other haram activitie...