The Validity of Bitcoins According to the Islamic Law
The presence of bitcoin invites many uncertainties, such as concerning its legality and the statement that bitcoin is not an official currency in Indonesia. Objective: This research aims to analyze the bitcoins in the perspective of the Islamic Law. Method: This research uses the literature review m...
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| Format: | UMS Journal (OJS) |
| Language: | eng |
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Universitas Muhammadiyah Surakarta
2022
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| Online Access: | https://journals.ums.ac.id/index.php/laj/article/view/17178 |
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| _version_ | 1805338300257402880 |
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| author | Yuspin, Wardah Salsabella, Sakia Agia |
| author_facet | Yuspin, Wardah Salsabella, Sakia Agia |
| author_sort | Yuspin, Wardah |
| collection | OJS |
| description | The presence of bitcoin invites many uncertainties, such as concerning its legality and the statement that bitcoin is not an official currency in Indonesia. Objective: This research aims to analyze the bitcoins in the perspective of the Islamic Law. Method: This research uses the literature review method. The literary materials obtained are in the form of scientific papers, online media, books, etc. that concerns the analyzed object. Findings: The circulation of bitcoin in Indonesia as a medium of exchange cannot be regarded as a currency, as it does not fulfill the terms and conditions for something to be called money. The bitcoin’s function does not commensurate with the function of money in the concept of the Islamic economy, as it tends to be a traded commodity rather than a facility of transactional exchange. In the perspective of Islamic law, the speculative use of bitcoins may bring one to the risk of violating the law on gharar (uncertainty, hazard); dharar (a transaction that may bring loss to a party); and qimar (game of chance). No authority guarantees bitcoins, and this causes harm. In conclusion, bitcoins produce more harm than good. Thus, its usage is prohibited by Islamic law. Function: This research provides an explanation of the legality of bitcoins, that may aid the Indonesian society to decide whether or not they can use bitcoins according to the law and th sharia. Novelty: There has not been any researches that study the same topic as that discussed in this article. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals.ums.ac.id:article-17178 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2022 |
| publisher | Universitas Muhammadiyah Surakarta |
| record_format | ojs |
| spelling | oai:ojs2.journals.ums.ac.id:article-17178 The Validity of Bitcoins According to the Islamic Law Yuspin, Wardah Salsabella, Sakia Agia Hukum Islam bitcoin; transaction; currency; validity; Islamic law The presence of bitcoin invites many uncertainties, such as concerning its legality and the statement that bitcoin is not an official currency in Indonesia. Objective: This research aims to analyze the bitcoins in the perspective of the Islamic Law. Method: This research uses the literature review method. The literary materials obtained are in the form of scientific papers, online media, books, etc. that concerns the analyzed object. Findings: The circulation of bitcoin in Indonesia as a medium of exchange cannot be regarded as a currency, as it does not fulfill the terms and conditions for something to be called money. The bitcoin’s function does not commensurate with the function of money in the concept of the Islamic economy, as it tends to be a traded commodity rather than a facility of transactional exchange. In the perspective of Islamic law, the speculative use of bitcoins may bring one to the risk of violating the law on gharar (uncertainty, hazard); dharar (a transaction that may bring loss to a party); and qimar (game of chance). No authority guarantees bitcoins, and this causes harm. In conclusion, bitcoins produce more harm than good. Thus, its usage is prohibited by Islamic law. Function: This research provides an explanation of the legality of bitcoins, that may aid the Indonesian society to decide whether or not they can use bitcoins according to the law and th sharia. Novelty: There has not been any researches that study the same topic as that discussed in this article. Universitas Muhammadiyah Surakarta 2022-03-24 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/laj/article/view/17178 10.23917/laj.v6i2.17178 Law and Justice; Vol 6, No 2 (2021); 112-128 2549-8282 10.23917/laj.v6i2 eng https://journals.ums.ac.id/index.php/laj/article/view/17178/7437 Copyright (c) 2022 Law and Justice https://creativecommons.org/licenses/by/4.0 |
| spellingShingle | Hukum Islam bitcoin; transaction; currency; validity; Islamic law Yuspin, Wardah Salsabella, Sakia Agia The Validity of Bitcoins According to the Islamic Law |
| title | The Validity of Bitcoins According to the Islamic Law |
| title_full | The Validity of Bitcoins According to the Islamic Law |
| title_fullStr | The Validity of Bitcoins According to the Islamic Law |
| title_full_unstemmed | The Validity of Bitcoins According to the Islamic Law |
| title_short | The Validity of Bitcoins According to the Islamic Law |
| title_sort | validity of bitcoins according to the islamic law |
| topic | Hukum Islam bitcoin; transaction; currency; validity; Islamic law |
| topic_facet | Hukum Islam bitcoin; transaction; currency; validity; Islamic law |
| url | https://journals.ums.ac.id/index.php/laj/article/view/17178 |
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