Bitcoin as a “contract annulment” in the Islamic religion

While Bitcoin may be facing backlashes from around the world, from governments and central banks to prominent CEOs, it is now announced it is “prohibited” by Islam. According to Middle East Eye and media, Egypt’s Grand Mufti Shawki Allam said in an official fatwa on Monday that trading with Bitcoin was “unlawful” according to Islamic rulings.

As Bitcoin is not legalized in Egypt, the major concern for the religious institutions in the country is that it may harm the social and economic security and thus, harm the citizens. According to an adviser of Mr. Alam, Bitcoin is primarily used for funding of terrorist activities, leaving Egypt in a precarious situation if Bitcoin is accepted in the country.

Saudi Arabia is another country that has strong negative views towards Bitcoin. The Saudi minister, Assim Al-Hakim recently said:

“We know that Bitcoins remain anonymous when you deal with it, which means that it’s an open gate for money laundering, drug money and haram [forbidden] money. Muslims should not get involved in such dubious transactions simply to make a quick buck, to make a quick profit. This is not an Islamic concept.”

Bitcoin is one of the major topics discussed in media and throughout the world. Its meteoric rise from $100 to almost $21,000 speaks volumes for the trust and consensus of Bitcoin developers and investors. Trading Bitcoin is forbidden in several countries now including Algeria, Morocco, Bolivia, Ecuador, China and many more.

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