Professional Documents
Culture Documents
CRYPTOCURRENCY:
BITCOIN
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
An Overview of Cryptocurrency
3
Central
Bank of China
Bangladesh
Central
Bank of
Bank of
Thailand
Iceland
• On July 2013, ruled • In March 2014,
bitcoin illegal because issued a statement
of a lack of existing explaining legal
laws status of bitcoin:
purchasing them
violate the Foreign
Exchange Act
Bitcoin: Who Regards What?
8
• Legally binding • Property value for
financial payment of
instruments & is a equivalent value
unit not expressed for purchased
in the form of legal goods, rental fees
tender or services
Japan
German Federal
Financial (Payment
Supervisory Services Act,
Authority (BaFin) being effective
June 2017)
Canada (Bill C-
Brazil (Law No.
31): Amendments
12, 865 ) –
to Canada
provides for
Proceeds of
creation of
Crime (Money
electronic
Laundering) and
currencies
Terrorist
including bitcoin
Financing Act
• Treat virtual • Financial asset
currency, (not currency) that
including bitcoin will trigger tax
as money service imposition on
business gains
Who Accepts Bitcoin as a Mode of
9 Payment?
Windows 10 Home =
0,0031
Content Outline
10
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
Why Do We Need to Ascertain the
11 Ruling of Bitcoin?
Commodity?
Money/ Financial
Currency? Asset?
What is
Bitcoin?
13
Wealth
Wealth (Mal)
Commodity
Criteria of wealth Financial
(Sil’ah)
▸ Can be owned
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
15
Is Bitcoin a Commodity?
▹Specific criteria of commodity:
▸ Must have an intrinsic value that can be
benefited from (i.e. muthman, NOT thaman)
Identifiable
Transferable
Can be owned
18
Commodity?
Currency? Financial
Money? Asset?
What is
Bitcoin?
Content Outline
19
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
20
Is Bitcoin Money/Currency?
▸ Objective:
▸ to regulate inflation and deflation risk that may
harm the value of the currency and the
underlying purchasing power it holds.
Is Bitcoin Money/Currency? (Cont’d)
24
▸ This condition is line with Ibn Qayyim’s
statement which says:
⬩ طا َال يَ ْرتَف ُع َو َال ً ضبُوْ ب أَ ْن َي ُكونَ َمحْ دُودًا َم ُ فَ َي ِج،ف تَ ْق ِوي ُم ْاِل َ ْم َوا ِل ُ ار الَّذِي ِب ِه يُ ْع َر ُ ََوالث َّ َم ُن ُه َو ا ْلم ْعي
َب ْل ا ْل َج ِمي ُع،ِالسلَعِ لَ ْم َي ُك ْن لَنَا ثَ َم ٌن نَ ْعتَ ِب ُر ِب ِه ْال َم ِبي َعات
ِ ض َك ُ ض؛ إ ْذ لَ ْو َكانَ الث َّ َم ُن َي ْرتَ ِف ُع َو َي ْن َخ ِف ُ يَ ْن َخف
َوذَ ِل َك َل يُ ْم ِك ُن َّإل،ٌعا َّمة َ ٌوريَّة ِ ض ُر َ ٌت َحا َجة ِ اس إلَى ثَ َمن َي ْعتَ ِب ُرونَ ِب ِه ْال َم ِبي َعا ِ َّ َو َحا َجةُ الن،ِسلَ ٌع
َو َل،احدَة ِ علَى َحالَة َو َ َو َي ْستَ ِم ُّر،ون َّإل ِبثَ َمن تُقَ َّو ُم ِب ِه ْاِل َ ْش َيا ُء ُ َوذَ ِل َك َل َي ُك،ُف ِب ِه ْال ِقي َمة ُ ِب ِس ْعر ت ُ ْع َر
َيقُو ُم ُه َو ِبغَي ِْر ِه
The thaman (price) is the standard by which the value of [all other forms of] wealth is known. It is
obligatory that it be precisely defined and regulated so that it does not rise and fall. That is because
if what serves as the price were to rise and fall as commodities do we would not have a price [standard]
by which to appraise what is being sold. Instead, everything becomes a commodity. People’s need for a
price by which all items of sale are appraised is essential and universal. That is not possible except by a
price (siʿr) by which value can be known. And that is not possible except by a medium of exchange
(thaman) by which things can be valuated, and it must remain in one state and not be measured in terms
of something else.
Money/Currency vs Bitcoin: An Analysis
Medium of exchange
Store of value
Legal tender
26
Commodity?
Currency? Financial
Money? Asset?
What is
Bitcoin?
Content Outline
27
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
28
Is Bitcoin a Financial Asset?
▹ Cash/money:
▸ Present value vs future value
⬩e.g.
MYR 100 billion on t1 vs MYR 120 billion on t120
▹A contractual right:
⬩to receive cash or another financial asset from
another entity
e.g. sukuk
⬩to exchange financial assets or financial
liabilities with another entity under conditions
that are potentially favourable to the entity
e.g. Sale of sukuk at the secondary market,
sale of debt
Where to Exchange Bitcoin?
32
Top 10 Bitcoin
Exchanges
Bitcoin vs Financial Asset: An Analysis
Characteristics of Financial Asset Bitcoin
Value is dependent on the time it is priced
Identifiable/Transferable
Can be owned
Store of value
Commodity?
Currency? Financial
Money? Asset?
What is
CC?
Content Outline
35
An Overview of Cryptocurrency
Bitcoin from the Shariah Viewpoint
Is Bitcoin a Commodity?
Is Bitcoin Money/Currency?
Is Bitcoin a Financial Asset?
Conclusion
36 So…what is Bitcoin?
Commodity?
Money/Currency?
Financial asset?
37
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