Hi fellow Steemians!
I stumbled across an interesting article, which is linked below on whether cryptocurrency is Halal (allowed) or Haram (not allowed) among Muslim Communities.
Halal
The articles stems from a report by a certified Muslim legal export Muhammad Abu Bakar named 'Is Bitcoin Halal or Haram: a Sharia Analysis'. In the report, he says that Bitcoin is halal as long as Muslim users trade it for the sake of payment, but should not be allowed for investment purposes.
Why is this important? Because there are 1.6 billion Muslims on this planet and shortly after this report was published, Bitcoin price rose roughly $1,000. Yes, it's a big deal.
Haram
In comparison to Abu Bakar's report, there are others who do not agree with the report. Certain religioius authorities such as the Turkish Directorate of Religious Affairs declared that "buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation, they can be easily used in illegal activities... and they are not under the state's audit and surveillance". Also the volatility of crypto prices make it similar to a gamble.
All great points.
My opinion
While I am not a Muslim, I do believe they have a significant presence among any communities in the world. It would be foolish to dismiss their opinion on this matter, or any other matters.
In my view, I believe cryptocurrency trading AND investment should both be allowed, hence halal.
Take an example of oil. Many Muslim countries are based in regions that are rich with oil. These countries obtain these natural goods, store them and sell them to others. While I'm no expert, I'm sure they adjust their supply depending on the price. I see a symmetry between this act and cryptocurrency. You purchase / mine crypto, save them and when the price is right, you sell them.
To counter some of the arguments given by the Turkish Directorate of Religious Affairs, crypto being used for illegal affairs doesn't make cryptocurrency itself illegal. It's the illegal activities that should be stopped and let's face it - people will commit crime with or without cryptocurrency. Also, volatility in price is something that is also quite common in other goods being traded by Muslim communities such as gold or oil, albeit not as much.
Please correct me if I'm wrong, but I've heard that the concept of modern trading using money or barter came from the Middle East due to their early advancement in trade in Dubai and surrounding regions. It was those who believed in Islam that were the creators of money and trading as we know. Now the whole ideology of trading is undergoing an evolution with cryptocurrency. To me, it seems harsh that those believing in Muslim are left out of this evolution which they had such a huge impact on.
What I'm trying to say is the Muslim community already has such a huge impact on the cryptocurrency market. They're bound to have even more effect and sooner or later more of them will join. So why not make it sooner?
Story source: Finance Magnates
Image source: Cryptona
Fascinating. I'm certainly not Muslim either, but I do find their system of legal rulings to be quite interesting, as well as their efforts at creating alternative approaches to banking. Have not previously seen it discussed how cryptocurrency fits into that framework.
I would note, however, that currency was in use by the ancient Sumerians and other civilizations of Mesopotamia several thousands of years ago, whereas Islam only began some 1400 years ago. Same region of the world and possibly even some of the same ethnic groups, but currency in the Middle East predates Islam by quite a bit.
I think the concern the Turkish directorate was trying to raise is that, while fiat currency can certainly be used for illegal or harmful activity as well, there is more action that a government can take to block that action if needed. Bank accounts containing fiat currency can be frozen or confiscated by a government if necessary to halt such activity, for example. It's much harder for a government to intervene in the illegal use of a cryptocurrency. Opinions can certainly differ on whether that's a bug or a feature of cryptocurrency; the Turkish government, understandably, sees it as a problem.
Thanks @nleseul for the great info! I'll take a note of them for future references. So many things I didn't know and it's great to be informed. Thank you.