A Comprehensive Analysis of The Varied Interpretations among Islamic Scholars Concerning Bitcoin Transactions

Abstract

At present, there is a notable divergence in viewpoints among Islamic scholars pertaining to the legality of Bitcoin transactions. A subset of these scholars categorically prohibits its use, while another endorses it. This disparity has precipitated confusion within the Muslim community, thereby complicating the task of adopting one stance over the other. The primary aim of this study is to meticulously examine and analyze the arguments presented by both subsets, with the objective of shedding light on the underlying causes of this divergence of viewpoints. To achieve this, the study utilizes a blend of descriptive and inductive analytical methodologies. The findings indicate that the scholars who prohibit Bitcoin largely base their arguments on external factors, with a minority of objections directly related to the inherent attributes of Bitcoin itself. In contrast, the subset that endorses the use of Bitcoin tends to focus on the intrinsic system of Bitcoin, often minimizing the importance of external factors. However, even the endorsers of Bitcoin acknowledge that current Bitcoin transactions are not without risks. They suggest that these risks should be addressed by the appropriate authorities through the implementation of effective preventive measures.