Bitcoin is forbidden in Islam
Egypt's Dar al-Ifta has issued a fatwa declaring the virtual currency 'Bitcoin', a medium of online exchange, to be forbidden in Islam. This fatwa was given on Monday. The Middle East Monitor reported on Tuesday.
The symbolic image of the virtual currency Bitcoin
The symbolic image of the virtual currency Bitcoin
Dar al-Ifta said bitcoin could be detrimental to the country's social and economic security. It could undermine the country's national security and central financial system.
Magdi Ashour, an adviser to Egypt's Grand Mufti, said the currency was used to finance terrorists. Which is a big threat to the country's economy.
Bitcoin is forbidden in Islam
Ashour added that there is no regulation on this currency. Which in Islam is considered to be a breach of contract. That is why it is haraam.
Asim al-Hakim, a Saudi minister before Egypt, banned bitcoin. Bangladesh Bank also declared bitcoin transactions illegal.
Bitcoin is a virtual token currency. This transaction is done through open source cryptographic protocol. No financial institution or bank is required for its transaction. As a result, there is no body in the world to control it. This is one of the biggest doubts about the monetary system, as many consider it an advantage.
The demand and price of Bitcoin is growing uncontrollably. In March 2016, the exchange rate of one coin against the dollar was ৪ 419.75, but this week it was ১৪ 14317.8. Its price is increasing almost every day. In a year and a half, the price has increased almost four times. The price of a bitcoin in Bangladeshi rupees is now around 12 lakh rupees. The users themselves do not know any reason for this abnormal increase in the exchange rate. Yet a group is leaning day by day behind this virtual currency exchange.