An Islamic scholar from Qatar has declared corrupt currencies as haraam. According to Doha News, Dr. Ali Al-Qaradaghi, Secretary General of the International Union of Muslim Scholars, says that investing in cryptocurrencies or digital currencies such as bitcoin and its counterparts is forbidden under Sharia law. After an in-depth study of the subject, Dr. Al-Qaradaghi, based in Qatar, confirms that investing in these coins is considered haraam in Islam and that one of the reasons is ‘prohibition of resources’. Sources of handling could potentially jeopardize ‘usury’, which means exploitative gains in trade or business under Islamic law, whereas digital currencies, unlike credit or banknotes, are not regulated by governments.
Commenting on the subject, Dr. Abdul Azeem Abu Zaid, an associate professor of Islamic finance at Hamad bin Khalifa University and an expert in Islamic finance, told Doha News that cryptocurrencies are not yet eligible as the correct currency because they do not meet the Shariah conditions or requirements. They are not suitable for trade or investment, this is due to the high risk associated with their trade due to their high volatility, which makes the whole process a gamble.
In one of his published books, “Does Shariah Recognize Corrupt Currencies as Correct Currencies?” Dr. Abu Zaid writes that one of the challenges with digital currencies is whether they can win the trust of the people. And this will not be possible unless it is controlled and managed by a trusted authority. Although there is no consensus in the Islamic financial sector on allowing digital currency, Digital and Innovation Advisor Devesh Vijay says banks, fantics and consumers have been on the wave of digital transformation for years, but Corona’s digital agenda With speed, it is no longer a choice, it is necessary for survival.
In this regard, the Governor of Qatar Central Bank (QCB) Sheikh Abdullah bin Saud Al Thani said that corrupt currencies are generally considered as a speculative asset and the possibility of using them for unnecessary transactions should not be ruled out. Perhaps, these sanctions are imposed because of the inherent risks associated with corrupt currencies as they pose significant challenges to the stability and integrity of the financial system.