Virtual Currencies and Their Impact on the Future of Economic Policy: A Comparative Jurisprudential Study

Author

Al-Azhar University

Abstract

This study examines the nature, origins, and formation of virtual currencies, the legal ruling on cryptocurrency mining, and the jurisprudential classification of various mining practices. It further investigates the types, advantages, and disadvantages of virtual currencies, the Islamic legal assessment of their use, the regulatory criteria applicable to specific types, and both international and domestic legal positions on their circulation. Particular focus is given to the potential impact of virtual currencies on the future of economic policy. The research adopts an inductive method alongside a comparative analytical approach.
The study concludes that virtual currencies may be considered a legitimate form of value, possessing both purchasing power and monetary worth. Some individuals have witnessed a significant increase in wealth through their use. It argues that issuing a universal ruling—whether permissibility, prohibition, or suspension—on all virtual currencies is not methodologically sound. Legal assessment must differentiate between various types, as these currencies serve different purposes. Some are tied to illicit activities and unethical transactions, and such forms are unequivocally prohibited. Others, such as asset-backed currencies issued by states or reputable financial institutions with clear and lawful objectives, may be deemed permissible.
The study recommends that Islamic legal bodies and fatwa institutions worldwide regularly review developments in the field of virtual currencies to issue detailed and specific rulings for each type. This would enable Muslims to engage with such technologies in accordance with the objectives of Sharīʿa. It also urges governments that permit the circulation of anonymously sourced virtual currencies to implement regulatory mechanisms to monitor mining operations and transactions, reduce associated risks, and address emerging challenges in line with the Sharīʿa objective of preserving wealth

Keywords

Main Subjects

Files

Share

How to cite

Statistics