TY - JOUR AU - Oziev, Gapur AU - Yandiev, Magomet PY - 2018/12/30 Y2 - 2024/03/29 TI - CRYPTOCURRENCY FROM A SHARI’AH PERSPECTIVE JF - Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC) JA - SHAJARAH VL - 23 IS - 2 SE - ARTICLES DO - 10.31436/shajarah.v23i2.748 UR - https://journals.iium.edu.my/shajarah/index.php/shaj/article/view/748 SP - 315-338 AB - <p>For the past few years there has been a significant increase of&nbsp;people’s interest in crypto-currencies. Seminars and conferences&nbsp;have been organized to discuss the nature and feasibility of&nbsp;cryptocurrencies. Some argue that it is good to have an alternative to&nbsp;the current fiat money system in which the predominant role is&nbsp;played by banks, while a cryptocurrency does not require any bank&nbsp;account, tax payment and auditing. Some others disagree with these&nbsp;arguments and claim that any mode of payment in other than&nbsp;traditionally known instruments such as cash payment,&nbsp;telegraphic-transfers, cheques and so, will open the door to avoid tax&nbsp;and audits, which in turn may seriously effect a government’s budget&nbsp;and may even decrease GDP. This research uses theoretical,&nbsp;descriptive and analytical methods of research and therefore focuses&nbsp;on the following important points: a) defining the place of&nbsp;cryptocurrency in the financial system by determining the extent of its&nbsp;influence; b) reviewing the literature on the topic, which will allow&nbsp;us to determine the current understanding of the problem by modern&nbsp;science; c) unveiling the key requirements of Shari’ah for money and&nbsp;money circulation to formulate a standard understanding of money in&nbsp;Shari’ah; d) comparing the characteristics of paper money and&nbsp;crypto-currencies (using the bitcoins as an example). The authors&nbsp;believe in permissibility of using the cryptocurrencies but with strict&nbsp;reservations.</p> ER -