Journal of Contemporary Islamic Law

Bitcoin is the most popular virtual currency in a virtual community. Appearing with various innovations that focus on transforming the worldwide monetary system, bitcoin is confronted with legitimacy constrain, absence of regulation and becomes a platform of legal violation. In general, this article will discuss on the mechanism of bitcoin operation as well as maṣlaḥah (best interest) and mafsadah (harm) that exist in the bitcoin financial system in the actualization of the concept of ḥifẓ al-Māl (safeguarding properties). Moreover, this article also lists some views of Islamic scholar and fatwas related to the status of bitcoin according to Shariah and conduct analysis on the relevance of bitcoin usage as a medium of payment according to the perspective of siyāsah shar’iyyah. The outcome of this discussion explains the arguments, reasons and the laws of bitcoin usage as currency and means of payment according to Shariah.

Keywords: Bitcoin, maṣlaḥah and mafsadah, fatwa, ḥifẓ al-Māl, siyāsah shar’iyyah

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