The Concept of Wealth (māl) in the Sharīʿah and Its Relation to Digital Assets

Abstract

The study aims to address the concept of wealth from the perspective of the Sharīʿah and its relationship to contemporary digital assets such as cryptocurrency (Bitcoin). The qualitative research approach is adopted for this research. The data is collected from several resources such as books, journal articles, reports, conferences papers, and websites. The data is analyzed through an explanatory research approach by providing scholars’ opinions and their arguments on the subject matter. The findings of this study show that Sharīʿah provides certain conditions to consider something as asset or currency from the Sharīʿah perspective. In regard to cryptocurrency (Bitcoin), the Sharīʿah rules vary based on the types of cryptocurrencies and whether cryptocurrency meets the conditions to be considered as currency or assets. Moreover, either cryptocurrency is an asset or currency, it should not contravene any Sharīʿah laws, such as ribā (interest) and gharar (uncertainty). Since Sharīʿah does not limit the currency to dirhams and dīnārs, Bitcoin can be considered as an alternative to the current currencies in a digital form. This would enable financial markets to move faster and secure transaction methods in the future. The policymakers might find this study beneficial to issue new guidelines and policy documents. The findings of the study might be interesting for cryptocurrency enthusiasts and investors to have a deeper understanding of cryptocurrency from the Sharīʿah viewpoint.

Meta-Mortgaging: Islamic Law Review on Marhūn Issues

“…Contemporarily, the Jumhur jurists' definition of something as a valuable asset accommodates material and immaterial objects in the form of benefits in a more accommodative manner than the Hanafiyah view (Rosele et al, 2022). As we see that currently the development of assets that can be guaranteed or can become marhūn are not exclusively limited to objects that are physical in nature, but also that are immaterial in nature.…”

Can Muslim Inherit Bitcoin? Discovering the Continuity of Digital Asset in Perlis

“…In contrary, Classic Hanafi jurists disregard inheritability of intangible asset (Islam, 1999). Thus, Bitcoin should fall within the definition and attributes of mal as mentioned above for it to be considered as mal (Rosele et al, 2022) before it can be inherited. Rosele et al (2022) also found that bitcoin meets fulfil all essential features or attributes of mal set by classical and contemporary jurists.…”

“…Thus, Bitcoin should fall within the definition and attributes of mal as mentioned above for it to be considered as mal (Rosele et al, 2022) before it can be inherited. Rosele et al (2022) also found that bitcoin meets fulfil all essential features or attributes of mal set by classical and contemporary jurists. Where it has its financial value according to the digital community that uses it where its capital market is USD $319,450,492,443 as at end of December 2022(CoinMarketCap, 2022.…”

Islamic Legislation on Wealth Acquisition: A Critical Examination of Crypto-Currency

“…Polas et al (2020) argue that, virtual currency is a form of money and fulfils money related issues (mode of exchange, unit of record, and store of noteworthy worth). It is therefore, one of the types of currencies that emerged as a result of the process of creating and developing money (Oziev & Yandiev, 2017), transcending from the era of barter, gold, silver coins, and gradually paper money, to a digital form (Rosele et al, 2022). Meanwhile, Oziev & Yandiev (2017) view that, crypto-currency, particularly Bitcoin and its likes, for saving purposes, investment and accumulation are impermissible under the Sharī'ah.…”

“…Ahmed Kamel Midin Meera, the former dean of the Institute of Islamic Banking and Finance at the International Islamic University of Malaysia, however, adds that: "in order for digital currency to be accepted in the Islamic financial industry, it must have a measure of value, which has to be a monetary commodity (Oziev & Yandiev, 2017). Rosele et al (2022)conclude that, crypto-currency falls under the category of mutaqawwim (Islamically recognised value), as long as it does not contravene the Sharī'ah guidelines of māl (wealth).…”