Egypt’s Grand Mufti declares bitcoin forbidden by Islam – issues a fatwa

    There has been a lot of words on cryptocurrency these days, especially about bitcoin. Earlier, a cryptocurrency expert was kidnapped for $1 million worth of bitcoins as ransom. Moreover, the top digital currency faced a drop in its price – from $20,000 per bitcoin, it is now at $13,990. And recently, bitcoin has been announced forbidden by Islam, according to the fatwa issued by the Grand Mufti of Egypt, Sheikh Shawki Allam.

    The Grand Mufti states that the cryptocurrency carries with it the possibilities of “fraudulence, lack of knowledge, and cheating”. He added that the risks could arise, as the cryptocurrency is not being regulated by any centralized authority. Furthermore, the religious authority said that the fatwa was issued after being consulted with numerous economists.

    The fatwa has clearly made bitcoin banned in Sharia (Islamic Law), as it considers the cryptocurrency, likely to be a cause of damage to individuals, groups, and institutions. Grand Mufti’s Counsellor, Magdy Ashour, said that the virtual currency was being used directly to fund terrorists. “It has no set rules, which is considered as a contract annulment in Islam, that is why it is forbidden,” he further stated.
    Back in August 2017, the first bitcoin exchange was opened in Egypt. However, last month, the cryptocurrency was declared banned by the state. Not only that but a New York-based woman was also charged with laundering and wiring bitcoins along with other cryptocurrencies to aid ISIS.

    Source: Newsweek

    Talha Saqib
    Talha Saqib
    Founder of Retrology. Been actively following the gaming and media industry for the past 15 years. Also, a full-time software engineer. My day-to-day tasks include writing, editing, strategizing content, managing my team, and handling the complete back-end.
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