Friday, April 13, 2018

Major Islamic ruling could change the cryptocurrency markets as Sharia scholar declares Bitcoin halal

An interesting ruling made recently by an Islamic scholar could soon have profound effects on the cryptocurrency markets.  That is because Bitcoin and other cryptos were found to be considered halal under Sharia finance law, and it means that the community of over 1.6 billion Muslims may soon be able to invest in these currencies.

A recent declaration by an Islamic scholar that Bitcoin is compliant with Sharia law could be the cause behind today’s $1000 price surge, opening the market to Muslim investors who were previously unsure if the cryptocurrency qualified as money under the strict definitions outlined by scholars. 
Muslims account for 23% of the world’s population, with 1.6 billion Muslims throughout the world, mostly in Asia Pacific nations like India and Indonesia. Sharia Law, or Islamic Canonical Law, prohibits the practice of lending money at high-interest rates, known as usury. Debate has raged since the popularity of Bitcoin in the Islamic Scholar community as to whether Bitcoin trading was a form of usury due to the volatility and huge profit and loss margins. - CCN
Of course to fully become legal under Sharia Finance Law, the council on Sharia Finance will need to conduct a study and make a determination on Bitcoin and other cryptocurrencies just as they did a little more than a year ago regarding gold and gold ownership.  And this has already been seen in the gold backed cryptocurrency markets with the establishment of OneGram being fully compliant under Sharia Law.

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