• Muslims in Indonesia will no longer be able to use cryptocurrency
  • Muhammadiyah banned digital assets
  • The clergy believe that this is a speculative instrument with a high degree of risk

The highest clergy of Muhammadiyah Indonesia issued a ban on any use of cryptocurrencies. Now, for local Muslims, this is the same “haram” as, for example, pork.

The ban is called “fatwa”. In fact, this is a definite decision dictated by Muslim religious law, which is taken by the clergy.

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This information on Tuesday, 18 January, published by the international edition of CNBC. The statement of the representatives of Muhammadiyah states the following:

“Tarji’s fatwa states that cryptocurrency is illegal both as an investment instrument and as a means of exchange or payment.”

This decision is dictated by two main factors. The first states that cryptocurrencies are a high-risk asset with a significant amount of “gharar”, ambiguity.

The second indicates that digital assets do not comply with Muslim barter laws. Religious law requires that the medium of exchange be legal and of value, that is, backed by, for example, gold.

We also note that investing in cryptocurrencies is “maysir”, that is, a game in which there is a risk of being left with nothing. According to the clergy, this is a speculative tool that should not be used by the faithful.

“The use of bitcoin as a medium of exchange illegal in nature. This asset is illegitimate in our country. There is no authority in Indonesia responsible for it,” the Tarjih Council spokesman said in a statement. 20450

Similar encroachments on cryptocurrencies are observed, for example, in India. The country is trying to “push through” a bill on a complete ban on digital assets.

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