The popular cryptocurrency Bitcoin was declared unlawful under Islamic Sharia this week by Egypt’s Grand Mufti Shawki Allam.
An official fatwa was issued Monday against the digital currency, which Allam claimed was akin to gambling – a practice deemed “haram” or forbidden under Islamic law “due to its direct responsibility in financial ruin for individuals.”
Allam argued that the “currency’s risk as well as its high profit potential undermines Egypt’s ability to maintain and stabilize its own currency.”
The religious leader added that Bitcoin – which could have a “negative effect on its dealers’ legal safety, possibly due to failure to publicly disclose such operations – would lead to an “ease in money laundering and contrabands trade” if allowed to flourish.
The mufti’s counsellor, Dr. Magdy Ashour, also claimed that the digital currency empowered both terrorists and criminals alike.
“This currency is used directly to fund terrorists,” Ashour told Egypt Today. “It has no set rules, which is considered as a contract annulment in Islam, that is why it is forbidden.”
Egypt’s Grand Mufti is not the first Muslim cleric to criticize the now-famous cryptocurrency, which has skyrocketed in value over recent months. In December, popular Saudi cleric Assim Al-Hakeem ruled that digital currencies are banned under Islamic law because they are “ambiguous.”
Bitcoin has become increasingly popular after reaching nearly $20,000 dollars in value last month.
Other Islamic Muslim leaders have criticized cryptocurrencies including Bitcoin as well.
Saudi cleric Assim Al-Hakeem also ruled last month that digital currencies are forbidden under Islamic law for being “ambiguous.”
“We know that bitcoin remains anonymous when you deal with it…” Al-Hakeem falsely claimed. “Which means that it’s an open gate for money laundering, drug money and haram money.”
Turkey’s Directorate of Religious Affairs in November likewise declared the use of digital currencies unlawful under Islamic Sharia.
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