Source of Publication
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article discusses the Islamic juristic position of virtual currencies. In the classical period, jurists differed on the reason behind Islam’s prohibition of usury when dealing with precious metals and their derivatives, with the majority arguing that this is because they are considered to hold value (thamaniyya). The cause (illa) of “holding value” can therefore be applied through analogy (qiyās) to all things understood by the laity to hold value in any era. In the contemporary period, this cause can also be applied to virtual currencies such as Bitcoin if they fulfill the following ethical conditions: customary acceptance, legal validity, and value stability.
Bitcoin, Islamic law, Virtual currencies
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Baker, Man and Semai, Muhammed, "The legal cause of “holding value” and its impact on islamic provisions regarding virtual currencies" (2020). All Works. 3508.
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Open Access Type
Gold: This publication is openly available in an open access journal/series