Working paper by Mr. Muhammad Abu Bakar – Mufti certified by the Jamia Darul-Uloom in Karachi, Pakistan under the supervision of Respected Sheikh Mufti Taqi Usmani – proposes s critic cut on Shariah status of bitcoin.
Interesting paper including exposure on history of money. development of Bitcoin, blockchain, Islamic property definitions and practices, and Bictoin in light of previous Fatwas.
Skipping to conclusions of the working paper:
- Blockchain is evolving, so should Shariah opinions as scholars do their own research
- Blockchain may act as a ledger recording value and cash transfers.
- Depending of jurisdiction and legal status, Bitcoin could be seen as permissible.
- Store of value, welath and data integrity arguably permissible. Buying cryptocurrency for investment purposes is not advisable.
- Beware of ponzi schemes.