Islamic Economics Studies Bi-quarterly Journal

Jurisprudential-Economic Analysis of the propertyness of Cryptocurrencies in Islamic Economics

Document Type : Research Paper

Authors

1 Faculty member of Information and Communication Technology Research Institute

2 PHD economics of Imam Sadiq University

3 Research Institute of Hawzeh and University

10.30497/ies.2023.243339.2108

Abstract

According to jurisprudence, real property is one of the conditions for the contract validity(credibility)The agreed concept of different definitions of real value is that the exchanges have a transaction value so that the expenditure of property in return is correct. This trade is not possible unless the transaction fee has an interest that is exchanged to obtain it. Now, this trade value is either determined based on a reality (or is validated on a certain subject and has no reality in the real world. Therefore, considering the involvement of the real property issue with trade in societies, the dfferene of norms, and the elite choice in an economic system is significant.  These days, with the proliferation of virtual encrypted currencies and assets (cryptocurrencies), the question has arisen as to how the real property on this phenomenon, as a virtual phenomenon, is determined and how the confrontation of the holy Sharia and the Islamic government should look like.In this research, an attempt has been made to explain the position of custom and Islamic government in determining and verifying the propertyness of objects, assets and money in a coherent structure by reviewing existing studies in order to provide a suitable answer to the question, based on valid jurisprudential methods, including fiqh al-ma'alamat and fiqh nizam based on the framework of Islamic economics. Then, the types of cryptocurrencies have been categorized based on the existing classifications, including asset and capital nature, as well as monetary nature, in a new classification, and finally, the propertyness of the types of cryptocurrencies has been examined. The results of the research show that first of all, the Holy Sharia has considered a special place for the people and common sense in the monetary and financial system and for determining the propertyness of assets and objects in exchanges, but it has mandated the Islamic government to supervise and control the approval and signing of the taxation of money and assets and other terms of transactions. Secondly, in addition to customary criteria, the Holy Sharia has considered other criteria for propertyness, and sometimes the Sharia has abolished the effects of propertyness on some objects that are rationally treated as wealth (such as wine). Thirdly, based on Islamic rules in individual jurisprudence, all cryptocurrencies, especially extractable cryptocurrencies such as Bitcoin, have the conditions of propertyness in Islam, but according to the conditions of the Islamic country, they may not comply with the terms and conditions of transactions in the government jurisprudence, but this does not lead to the loss of their propertyness, rather, the law can cancel the effects of its propertyness.

Keywords

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Islamic Economics Studies Bi-quarterly Journal
Volume 15, Issue 1 - Serial Number 29
September 2023
Pages 79-122