Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved]
Background: The industrial transformation requires a speedy shift to financial digitization. One of the needs for financial digitalization in the study of Islamic contracts and Islamic business law is the use of digital platforms with digital currencies. Regarding the merits and downsides of its Sha...
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| Format: | Article |
| Language: | English |
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F1000 Research Ltd
2023-08-01
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| Series: | F1000Research |
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| Online Access: | https://f1000research.com/articles/12-97/v2 |
| _version_ | 1827787721993617408 |
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| author | Amjed S. Al Fahoum Nasir Albalawee |
| author_facet | Amjed S. Al Fahoum Nasir Albalawee |
| author_sort | Amjed S. Al Fahoum |
| collection | DOAJ |
| description | Background: The industrial transformation requires a speedy shift to financial digitization. One of the needs for financial digitalization in the study of Islamic contracts and Islamic business law is the use of digital platforms with digital currencies. Regarding the merits and downsides of its Sharia restrictions and its halal certification, which is currently under discussion, digital currencies and perks have generated controversy in Jordan and other Islamic countries. Methods: This study intends to analyze the legal foundations of digital currency from Jordanian and Islamic legal perspectives. The descriptive-qualitative research approach was utilized, and data collection processes included documentation and a literature review. All legal possibilities that may be drawn from Islamic law in order to investigate the legality of digital currencies are explored further and used to obtain the conclusions of this study. Results: A review of Sharia reasons and consideration for the wellbeing of the people suggests that digital currencies in their current form are incompatible with it and must adhere to the stipulations of Islamic finance. Therefore, digital currencies are unsuitable as a store of value or wealth due to their erratic swings, lack of purchasing power, and instant responsiveness to any technical problem, technical penetration, or official circumstance. Due to market instability, digital currencies can't be utilized to defer payments, settle debts, or repay loans. Conclusions: Digital currencies are speculative; not real money. Most of those who have this money are speculators seeking a quick payoff. Sharia views digital currency trading as gambling due to its high degree of volatility. Jordan's government should regulate digital currency use to meet demand. Digital currencies must be addressed under e-commerce laws. |
| first_indexed | 2024-03-11T16:52:16Z |
| format | Article |
| id | doaj.art-4699d771fa30496ba17ed562d6b3466e |
| institution | Directory Open Access Journal |
| issn | 2046-1402 |
| language | English |
| last_indexed | 2024-03-11T16:52:16Z |
| publishDate | 2023-08-01 |
| publisher | F1000 Research Ltd |
| record_format | Article |
| series | F1000Research |
| spelling | doaj.art-4699d771fa30496ba17ed562d6b3466e2023-10-21T00:00:01ZengF1000 Research LtdF1000Research2046-14022023-08-0112154892Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved]Amjed S. Al Fahoum0https://orcid.org/0000-0001-5190-3048Nasir Albalawee1https://orcid.org/0000-0001-7042-3234Biomedical systems and Informatics Engineering Dept., Yarmouk University, Irbid, JordanJadara University, Irbid, JordanBackground: The industrial transformation requires a speedy shift to financial digitization. One of the needs for financial digitalization in the study of Islamic contracts and Islamic business law is the use of digital platforms with digital currencies. Regarding the merits and downsides of its Sharia restrictions and its halal certification, which is currently under discussion, digital currencies and perks have generated controversy in Jordan and other Islamic countries. Methods: This study intends to analyze the legal foundations of digital currency from Jordanian and Islamic legal perspectives. The descriptive-qualitative research approach was utilized, and data collection processes included documentation and a literature review. All legal possibilities that may be drawn from Islamic law in order to investigate the legality of digital currencies are explored further and used to obtain the conclusions of this study. Results: A review of Sharia reasons and consideration for the wellbeing of the people suggests that digital currencies in their current form are incompatible with it and must adhere to the stipulations of Islamic finance. Therefore, digital currencies are unsuitable as a store of value or wealth due to their erratic swings, lack of purchasing power, and instant responsiveness to any technical problem, technical penetration, or official circumstance. Due to market instability, digital currencies can't be utilized to defer payments, settle debts, or repay loans. Conclusions: Digital currencies are speculative; not real money. Most of those who have this money are speculators seeking a quick payoff. Sharia views digital currency trading as gambling due to its high degree of volatility. Jordan's government should regulate digital currency use to meet demand. Digital currencies must be addressed under e-commerce laws.https://f1000research.com/articles/12-97/v2Digital Currencies Bitcoin Digital Representation The Physical Presence of Currency Functions of Money Jordan Law.eng |
| spellingShingle | Amjed S. Al Fahoum Nasir Albalawee Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] F1000Research Digital Currencies Bitcoin Digital Representation The Physical Presence of Currency Functions of Money Jordan Law. eng |
| title | Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] |
| title_full | Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] |
| title_fullStr | Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] |
| title_full_unstemmed | Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] |
| title_short | Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation [version 2; peer review: 2 approved] |
| title_sort | islamic legal perspectives on digital currencies and how they apply to jordanian legislation version 2 peer review 2 approved |
| topic | Digital Currencies Bitcoin Digital Representation The Physical Presence of Currency Functions of Money Jordan Law. eng |
| url | https://f1000research.com/articles/12-97/v2 |
| work_keys_str_mv | AT amjedsalfahoum islamiclegalperspectivesondigitalcurrenciesandhowtheyapplytojordanianlegislationversion2peerreview2approved AT nasiralbalawee islamiclegalperspectivesondigitalcurrenciesandhowtheyapplytojordanianlegislationversion2peerreview2approved |