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Jakarta Post

Sharia rulings on cryptocurrencies

  • Muhammad Shodiq
    Muhammad Shodiq

    Vice president, Syariah & MSME Academy head at CIMB Niaga

Jakarta   /   Mon, February 19, 2018   /  11:20 am
Sharia rulings on cryptocurrencies Bitcoin and other cryptocurrencies also fail to comply with the sharia requirements, as they are not backed by any tangible real world asset. (Shutterstock/File)

The concept of cryptographic currency is not new. Efforts to launch digital currencies began in the 1980s, with cryptocurrencies following closely behind in the 1990s. About eight years ago, a pseudonymous cryptographer known as Satoshi Nakamoto introduced Bitcoin as a digital analog to gold: Limited in supply, but secured by modern cryptography, and made for the internet age. Bitcoin and alternative cryptocurrencies are starting to see widespread adoption. The main innovation behind cryptocurrencies is that, instead of relying on a trusted third party, transactions are recorded and propagated in a distributed ledger known as the blockchain. This allows transactions to be trustless, censorship-resistant, permissionless and private. There’s a lot of excitement about cryptocurrencies. Optimists claim cryptocurrencies will fundamentally alter payments, economics and event ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.