The Compatibility of Cryptocurrency and Islamic Finance Law

Abstract

Cryptocurrency, often known as crypto, is any type of digital or virtual currency that employs encryption to prevent fraudulent transactions. In terms of the Islamic stance on cryptocurrencies, Muslim scholars and Shari'ah specialists have evolved differing viewpoints, resulting in some believing it is halal and others believing it is haram. With the goal to determine the perceptions of the system, this paper conducted a qualitative research technique that included thorough observation and literature reviews. According to the results, there is insufficient clarity of Islamic law on the essential requirements for using cryptocurrencies as a transaction tool. Therefore, an Islamic digital currency framework is required to implement Islamic law for cryptocurrency use