Is Bitcoin Halal & Are Cryptocurrencies Legitimate
Channel: Yasir Qadhi
File Size: 5.08MB
We are often looking for investment opportunities, but as Muslims, we have certain things that are Halal and Haram. Is cryptocurrency something we can invest in as Muslims? Shaykh Yasir explains!
Tip number seven
Islamic ruling on cryptocurrencies. cryptocurrencies are a new form of decentralized commodities. And the point of cryptocurrencies is to be a type of currency that is not backed by a government. It's not backed by a known institution. It's not backed by the banks. And it is created by groups of people that generally speaking are not too sympathetic to banks and governments. Last year, the Council of North America
dedicated a significant amount of time to talk about cryptocurrencies in our meeting in our annual meeting, and we went over this issue in a lot of detail and by unanimous consensus, we issued a fatwa. To be more precise, we will be issuing a fight to what within a week or two but the federal has been finalized, I have drafted the initial draft is just going to be circulated amongst other members and then released inshallah Tada, maybe by next month after hedge, but it is unanimous. We all agree, cryptocurrencies. Firstly, our fight was about Bitcoin only not about all of the currencies, because every currency has its own ruling. The general ruling is that we did not find
any reason to prohibit cryptocurrency, and therefore it remains at the default and the default is that everything is allowed, unless proven otherwise. Memorize the simple principle My dear brothers and sisters in Islam, when it comes to more almanacs
when it comes to eating and drinking and interactions with money and walking around and whatever you want to do. Everything is halal. Unless the Shetty says it is how long? So if two people are debating, is it healthy to drink water from a plastic bottle or not? One person says it's healthy. The other person says is how long? Who needs to bring the evidence?
The one who says it's wrong? The one who says hello does not need to prove anything. Everything is headed unless the evidence is that it is haram Is that clear? So we looked at every single criticism of cryptocurrency. And we looked at a number of fatawa committees around the globe. Some of them said it is wrong. Some of them said it is Hello. And we looked at this in detail. And from us in North America, we concluded that none of them raised objections to the level that it makes it home. So they said for example, there is no value to cryptocurrency and the response to this is value is relative value is relative, what you find valuable or these five values relative they said of the
objections, they said there's no government that backs it the responses you don't need to have a government to have some so all of these we looked at every objection after the other and we came to the conclusion there is no issue that will make cryptocurrencies out um in general and Bitcoin specifically we looked at and we said it is helpful to mine it, it is helpful to invest in it and buy and trade it but the value of fiat currency will apply to cryptocurrency, which means spot trades must occur, you must trade it on the spot value right then and there. When you purchase you get your money back. You cannot just delay and have an unknown value. Just like if I exchange
dollars for pounds. If I exchange rupees for liras it has to be done instantaneously and then be sold to cryptocurrencies must be done immediately, you cannot have a transaction that is delayed. And we concluded the photo by saying that even though we say that it is halaal. Still, there seems to be a gray area and especially in terms of safety. In terms of wisdom, we as the field counsel, it's not our job to give investment advice. But we do agree with those investors who said do not invest in kryptos more money than you're willing to lose, because the Muslim is not foolish, and we should not spend our money foolishly, but the base ruling cryptocurrencies and in particular Bitcoin
that we looked at is halal. As for every cryptocurrency we have to go look at that. But generally speaking, the major ones Bitcoin Litecoin, the ones that everybody knows about these generic cryptocurrencies that are famous and are already established, there's nothing in the shediac to prohibit them. Yet we caution that people should not be foolish because Allah wants us to preserve our wealth.