While cryptocurrency market constantly grows, Islam still has dubts about respecting Muslim regulations.
Because of a big confusion about its legitimacy among Muslims, Mufti Muhammad Abu Bakar, an Islamic scholar and head of Sharia compliance at Blossom Finance, wrote a report stating that Bitcoin can be considered halal.
Abu Bakar approached the subject with the mindset that Sharia is very interpretable on specific matters like these, which could easily create contradictions that don’t have any clear answers.
Blossom Finance report starts from the fact that encryption is forbidden and claims that, since cryptocurrency is widely accepted, it is now considered a form of money. Another reason is that cryptography is not controlled by a central authority and can therefore be safer than other existing systems.
The report contains a warning: not to buy cryptocurrency as investment, but to use it as payment system, taking advantage of its benefits.
This report contradicts what Egyptian and Turkish scholars said. In fact, they have even released fatwas because they declared that Bitcoin can be also used for unlawful activities. Abu Bakar refuted this thesis, affirming that the use of any lawful thing for an unlawful purpose cannot make the thing itself unlawful.