*"The Creation and Trading of Digital Currencies from a Jurisprudential Perspective: A Comparative Study"*

Document Type : Original Article

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faculty of islamic and arabic studies for girls in alexandria

Abstract

The Creation and Trading of Digital Currencies from a Jurisprudential Perspective: A Comparative Study


Abstract:
Digital currencies represent a significant shift in the global financial system and have raised important jurisprudential questions about their legitimacy in Islamic law. This study aims to examine the concept of digital currencies, their classifications, core characteristics, and the nature of their creation outside sovereign authority. It further assesses their status under Islamic jurisprudence and analyzes differing scholarly opinions regarding their permissibility.
The research employs a descriptive-analytical approach to define and classify digital currencies, an inductive method to trace relevant Sharia texts and juristic views, a deductive approach to derive rulings from Islamic evidence, and a comparative method to evaluate and weigh opposing legal opinions.
Key findings include the adaptability of Islamic law to emerging financial innovations, the technical nature of digital currencies based on blockchain technology, and international divergence on their acceptance. Digital currencies are distinguished by features such as decentralization, encryption, transparency, and privacy.
The study concludes that the creation of digital currencies outside state control is generally impermissible in Islamic law, due to concerns over financial stability and regulatory risks.Moreover, it favors the opinion that trading in such currencies is not allowed under Sharia, given the lack of sovereign guarantee and essential properties of lawful currency.

Keywords: digital currencies, Islamic jurisprudence, creation, trading, Sharia perspective.

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