An Overview Of The Various Opinions And Objections To Virtual Currency

Abstract

Humans have needed currency in different forms (gold, silver, metal, paper, paperless, etc.) in different eras to meet life's needs, and currency has been significant in every era.   The role of currency has varied in different eras. Currently, virtual currency is a major challenge for economic and regulatory affairs, as decentralized virtual currency. The new form of virtual currency has caused serious financial losses to the public and governments. Researchers, authors, economists, and Shariah scholars are still not declaring "virtual currency" as a currency legitimate, rather they attach it with some strict conditions.

Acceptance of virtual currency in the economic world has various forms, such as property, as currency, legally permitted mining, etc.  The virtual currency has been accepted as a property or asset by various countries, but the virtual currency has not been accepted as currency. There are only two countries that have accepted virtual currency as legal tender (currency).

International financial institutions, such as IMF, World Bank, FATF, etc., still call virtual currency harmful to the public and advise the public to avoid it. Below is an overview of their objections. has been done.

Objections to virtual currency are divided into three parts. These objections are of an exceptional nature which cannot be ignored.

1-Objections to Sharia status.            2- Legal objections.             3-Problems of practical difficulties.

There are several Shariah prohibitions, in terms of creating virtual currency and using it as a medium of exchange.

 No government permission, virtual currency has no personal value, virtual currency includes an element of uncertainty, virtual currency is valued in dollars. It is associated with and varies from country to country on the value of the dollar, the holder of virtual currency will take it and sell it where the price is good, there is an element of gambling in it, virtual currency does not have the status of an alias. The number of people using it as a tool of exchange is 3 to 5%.

There are also disadvantages to using virtual currency as property. Virtual currency is an immaterial asset like video, naat, recitation, film, etc. but the nature of virtual currency is different. Virtual currency as property does not fulfill Shariah rules and regulations.