Implication of the Determination for the Gold Ribawi 'Illah (Cause) Towards Fiat Money in Islam

Abstract

The objective of this study is to explain the determination and implications of the gold ribawi 'illat for the use of fiat money according to Islamic views. This determination implies the practice of Muslims including the methods of transactions using currency, zakat and mudarabah capital. This study is qualitatively descriptive by reviewing the views of scholars' in their respective works. The data is analyzed descriptively and comparative to get the most appropriate view. The findings show that there are two views, the views that consider the 'illat ribawi emas include fiat money and the opposite view. As a result, this study chooses the first view that fiat money containing the gold ribawi 'illat. Thus, fiat money transaction law is the same as the law of gold transactions. This study is useful for Muslims in terms of transactions using fiat money in payment of zakat, capital provision and currency exchange.