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Fatwa on Bitcoin & Other Cryptocurrencies

Sh Dr Haitham al-Haddad summarises his fatwa on Bitcoin and other cryptocurrencies.

For a more detailed explanation click below:

For the research paper (Arabic) click here. An English version will be published soon inshāAllāh

Source: www.islam21c.com

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About Shaikh (Dr) Haitham Al-Haddad

Dr. Haitham al-Haddad is a jurist and serves as a judge for the Islamic Council of Europe. He has studied the Islamic sciences for over 20 years under the tutelage of renowned scholars such as the late Grand Mufti of Saudi Arabia as well as the retired Head of the Kingdom's Higher Judiciary Council. He specialises in many of the Islamic sciences and submitted his doctoral thesis on Islamic jurisprudence concerning Muslim minorities. Shaikh Haitham is highly respected having specialised knowledge in the field of fiqh, usul al-fiqh, maqasid al-shari'ah, ulum al-Qur’an, tafsir, aqidah, and fiqh al-hadith. He provides complex theories which address the role of Islamic jurisprudence within a western environment whilst also critically re-analysing the approach of Islamic jurists in forming legal rulings (ifta’) within a western socio-political context. He has many well known students most of whom are active in dawah and teaching in the West. The shaikh is an Islamic jurist (faqih) and as such is qualified to deliver verdicts as a judge under Islamic law, a role he undertakes at the Islamic Council of Europe as Islamic judge and treasurer. Dr Haitham al-Haddad also sits on various the boards of advisors for Islamic organisations, mainly in the United Kingdom but also around the world.

4 comments

  1. Abdullah Muhamad

    As salaamu alaikom,
    I feel that there should be a distinction made between blockchain technology and cryptocurreny.
    Every crypto currency uses blockchain technology but not every blockchain technology is a crypto currency

    there are many crypto tokens that use blockchain technology and are not intended as a currency, for example ethereum is a smart contract platform which other applications can be built on top of, there are many other blockchain technologies out there which are being used with no intention of being a crypto currency
    if we are to now say that blockchain technology is haram then we must also say that windows operating system and macintosh operating system is haram, in a few years everything will be using blockchain technology, from the internet web browsers we use to the tv and computers that we use,

  2. Thanks Shaikh! Your views are in my opinion the best out there and you also have the necessary knowledge on the technology behind cryptocurrency.
    Just like the Nixon shock in 1971, this will be the next big thing and unfortunately, Muslim nations (or non-muslims) are in no position to stop/halt the technology, which means that this will become adopted in a few years whether we like it or not.

    My Question:
    In comparison to post-1971 fiat currencies, bitcoin/cryptocurrencies offer a much better alternative (limited supply so there is no extra money creation, all other cryptocurrencies are like ‘projects/companies’, government crypto-currency tenders are already happening (Petro – Venezuela), less zulm in the sense that governments and leaders who are powerful cannot manipulate and print more bitcoins). Bitcoin at least gives people a fair chance for everyone to safeguard their value of money, for example, if a poor man has $100, that $100 will be less value in 10 years but if he has $100 of bitcoin then in future it might be worth more (or less) and that poor man should not just allow the government/leaders to manipulate the national currency and affect his earning/wealth, doesn’t it make bitcoin a better deal than the fiat-currency of today?

    Question 2: If Bitcoin/cryptocurrencies become widely adopted in 20 years, wouldn’t it be a big ‘Zulm’ for someone who had 1000 bitcoins (he bought at $100) and he sold them today because he saw this Fatwa and then after 20 years the price of Bitcoin is $50,000 and widely adopted, even more than fiat? An answer to that might be ‘yes Allah has promised and will give due sustenance’ and ‘Wealth in this world is temporary and Allah will give him Ajar’, but wouldn’t that make Muslims last ones to adopt this technology when we were once pioneers?

    Comment will be appreciated, especially for question 1.

    Jazakallah Khair

  3. Good. People are jumpin.on the bandwagon, with this bitcoin rubbish. They will say its halal if their making good money lol. Same type of people will work in investment banks and eat from riba, because moneys good. People need protection from being foolish and throwing their money away.

  4. There are so many things he said that are at best inaccurate or simply wrong! I believed shaikh haitham to be well grounded in finance and economics.
    Creating money from nothing
    A part from the fact that only Allah creates from nothing, since when mining, which requires a huge amount of power, men and skills (entire companies are dedicated to this) is nothing?
    Cryptos are a digital asset, not currencies ! Definition of a currency : “a system of money in general use in a particular country”. Even bitcoin, the most spread of all, is not in general use in the US!
    Also if creating money from nothing is haram, what is fractional reserve then? When bank can create real money/currencies out of literally nowhere.. According to him it is then haram to use pounds, dollars, euros, riyals etc.
    I’ll stop here but I could carry on and on and on

    It is a shame that our “scholars” are researching so little to make fatawa nowadays. Assim Al hakeem and a professor from Madinah University did the same mistake.

    We Muslims used to be pioneers in the world in scientific and technological matters. Now we are jokes.

    الله المستعان

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For over a decade Islam21c has been empowering Muslim communities worldwide offering guidance and solutions. Because of this our readership has grown enormously alhamdulillāh and yet we have never charged a penny. Strictly operating as a non-profit, we are completely run by your donations and ad sales from a small pool of ethical clients because maintaining our principles and independence is what matters most. We urgently need your support to expand, improve and empower millions more. Our work takes a lot of time and effort but we are determined to continue working to bring the ummah what few others offer.

Join us in our effort by donating as little as £3 a month to run Islam21c, a source of guidance for generations to come inshāAllāh
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