The status of crypto currency as a monetary unit according to Islamic Law (The case of bitcoin)

Crypto Currency, and Bitcoin, which is the first type of this new currency unit, is an electronic interpersonal system that does not have a specific center, and its infrastructure is based on the Blockchain System, which emerged as an alternative to the traditional payment systems with the merger of technology and finance. Bitcoin offers its users fast money transfer and low cost advantages. However, its decentralized structure that emerged as a result of the merger of technology and finance hosts risks like not being subject to laws and regulations, users being able to open anonymous accounts and make transactions in this way, excessive fluctuations in its value, its being used in financing illegal businesses, and being vulnerable to cyber attacks. Bitcoin has become the focal point of discussions between economists and Islamic Law Specialists because -unlike the traditional monetary system- it is decentralized, and has different advantages and risks. In this respect, the approaches of Islamic Law Specialists were examined by considering the viewpoints of economists about Bitcoin, and the status of it in being accepted as a monetary unit according to Islamic Law was evaluated from different perspectives. Fourteen centuries of the accumulated knowledge of Muslims is contributing at a significant deal to the modern discussions on emerging currency types. In addition to the negative and positive approaches of Islamic Law Specialists about Bitcoin, there is also an approach which advises that it is more proper to be cautious about Bitcoin. Those who have negative perspectives argue that Bitcoin is not actual money, nor does it meet the requirements for being a commodity. For some who have positive arguments, Bitcoin is a digital value; and for others, it is money. It has been determined that Bitcoin represents a digital value; however, for now, it does not cover the functions of actual money. However, as a result of the risks hosted by the Bitcoin System, it was considered proper to examine the pros of the system as the wealth of the users may result in underserved gains or losses; however, it was also concluded that having a cautious attitude towards making transactions would be the most appropriate approach.