Examination of Preservation of Wealth as a Prime Limb of Maqāṣid Al-Sharīʻah to Justify Bitcoin in Islamic Jurisprudence

Abstract

This article adopts a maqāṣid al-sharīʻah approach to dealing with Bitcoin transactions. The Islamic law’s position on Bitcoin transactions is not explicitly clear. Unsurprisingly, Islamic law provides no rulings specific to Bitcoin transactions, as Bitcoin never existed at the time of Prophet (PBUH). Such disparity has created controversy among contemporary Islamic jurists on the permissibility of such transactions. While many Islamic jurists argue for the impermissibility of Bitcoin and any associated transaction involving Bitcoin, few Islamic scholars counter-argue the permissibility of Bitcoin if it is so engineered to fully adhere to Islamic values and principles. The article adopts a legal research (doctrinal) methodology in conformity with its agenda which is to review the Islamic rulings on the impermissibility of bitcoin transactions. This article suggests that the existing disparity is eliminated with a maqāṣid al-sharīʻah approach that takes a broader view of the philosophy and values of Islam linking the explicit rulings of Islamic law and jurisprudence to their implicit objectives. The research findings suggest that bitcoin and any transactions involving bitcoin fail to comply not only the jurisprudential requirements of permissibility but also the implicit objectives of sharīʻah, notably the “preservation of wealth” (ḥifẓ al-māl). This study emphasises that the objectives of sharīʻah must be followed in managing Bitcoin-related entities by formulating corporate objectives and Bitcoin policies complying with maqāṣid al-sharīʻah. Furthermore, these formulated objectives must be incorporated to indicate whether the Bitcoin entity upholds Islamic principles.