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Jakarta Post

Prospects of cryptocurrencies in Islamic finance

  • Emir Hrnjic and Nikodem Tomczak


Singapore   /   Mon, February 24, 2020   /  01:26 pm
Prospects of cryptocurrencies in Islamic finance Indonesia Waqf Board (BWI) foreign division chief Muhammad Luthfi (center) talking about waqf (Islamic endowments) during a press conference held at the Fourth Indonesia Sharia Economic Festival 2017 in Surabaya, East Java. During this opportunity he was accompanied by Bank Indonesia sharia finance and economy department division chief Bambang Himawan (left) and Robbyantono, of the BWI’s waqf management and empowerment division, on Nov. 8. (JP/Arief Suhardiman)

In 2019, a mosque in London announced it would begin to accept donations in cryptocurrency form, claiming to be a world first. Although many were skeptical, the mosque received four times more donations in cryptocurrency during the month of Ramadan than in traditional cash. Even before the mosque’s experiment, debate has been raging about the permissibility of cryptocurrencies under Islamic law as religious scholars deliberate the issue of sharia compliance. Some religious scholars in Egypt, Turkey and India for example have directly opposed the use of cryptocurrencies citing various issues such as their use in illegal activities, widespread speculation and price volatility. Others, however, have declared bitcoin sharia compliant, paving the way for Islamic institutions to start accepting cryptocurrencies. Considering that the worldwide Islamic finance market recently surp...

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