Bitcoin is confirmed Halal under Islamic law
An Islamic student announces that Bitcoin is halal under Islamic law. Halal means that something is permissible under Islamic law. Bitcoin is now permissible under sharia law which would attract 1.6 Muslim investors across the globe.
Just after the news, there was surge found in the bitcoin price, it raised more than $1,000 within the short span of one hour. Some analysts believe that it is due to the declaration that Bitcoin is legal under Islamic law.
The scholar at Blossom Finance, Indonesia conducted an extensive study to find whether the operations of bitcoin and other cryptocurrencies fit with the definitions of money as per the strict Islamic laws.
According to the CEO of Blossom Finance, Indonesia, Mathew Martin, many legal pronouncements (fatwah) were issued by well-known Islamic scholars giving contradictory and incomplete opinions on this topic.
The author of the study pointed out that, since the cryptocurrency, bitcoin is legalized in Germany; hence, Bitcoin is also eligible as the Islamic money there.
The study also states that since Bitcoin is acceptable in principle as it is considered as valuable by global exchanges’ market price and is used by a number of merchants for a variety of payments. In addition to it, many private organizations accept Bitcoin as the medium of exchange in their private transactions.
Within that stipulated hour more than one billion worth traders were registered on distinct cryptocurrency exchanges across the globe. This is considered as the largest volume in the history as of now.
Any news either in favor or against the cryptocurrency space affects the prices of cryptocurrency. Similarly, this news has affected the price in a positive way and that could help in future profits also.
CEO of Fintech startup, Olga Feldmeier, things are getting positive for bitcoins and that may have been related to the Sharia Law compliance.