Fatwa ID: 08855
Answered by: Alimah Maryam Badshah
Question:
Is investing in stock market like Bitcoin or Ethereum haram?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Bitcoin and Ether (Ethereum) are two different types of cryptocurrency, and are forms of decentralised digital assets. Islamic scholarly research on cryptocurrency considers it to be wealth that has Shar’i value, but it lacks certain attributes of currency. They have also deduced that it also fails to meet the Islamic standards of financial morality and preservation of wealth. Despite its weakness in areas of currency attributes, it is considered permissible to invest in Bitcoin and Ether in order to trade it in the future.
What is meant by “Shar’i value” is the permissibility for an item to be bought and sold in Islam. As for “attributes of currency”, this refers to a currency’s ability to be an independent standard of value and its intrinsic worth as a medium of exchange. A lack of intrinsic worth results in a currency’s value to be excessively volatile and therefore a risky investment.
It should be kept in mind, however, that while it is considered technically permissible to trade in cryptocurrencies, it would be both unwise and immoral to do so with the current structures we see today. This is due to the fact that cryptocurrency lacks utility and does not serve to improve the economy. With it lacking both inherent value (commodity money) nor being a form of fiat currency, these brands strive to invent utility by often structuring themselves under the framework of pyramid schemes or non-transparency, and therefore it would be better to avoid such investments.
References:
الْمُرَادُ بِالْمَالِ مَا يَمِيلُ إلَيْهِ الطَّبْعُ وَيُمْكِنُ ادِّخَارُهُ لِوَقْتِ الْحَاجَةِ، وَالْمَالِيَّةُ تَثْبُتُ بِتَمَوُّلِ النَّاسِ كَافَّةً أَوْ بَعْضِهِمْ، وَالتَّقَوُّمُ يَثْبُتُ بِهَا وَبِإِبَاحَةِ الِانْتِفَاعِ بِهِ شَرْعًا؛ فَمَا يُبَاحُ بِلَا تَمَوُّلٍ لَا يَكُونُ مَالًا كَحَبَّةِ حِنْطَةٍ وَمَا يُتَمَوَّلُ بِلَا إبَاحَةِ انْتِفَاعٍ لَا يَكُونُ مُتَقَوِّمًا كَالْخَمْرِ، وَإِذَا عُدِمَ الْأَمْرَانِ لَمْ يَثْبُتْ وَاحِدٌ مِنْهُمَا…
… وَحَاصِلُهُ أَنَّ الْمَالَ أَعَمُّ مِنْ الْمُتَمَوَّلِ؛ لِأَنَّ الْمَالَ مَا يُمْكِنُ ادِّخَارُهُ وَلَوْ غَيْرَ مُبَاحٍ كَالْخَمْرِ، وَالْمُتَقَوِّمُ مَا يُمْكِنُ ادِّخَارُهُ مَعَ الْإِبَاحَةِ، فَالْخَمْرُ مَالٌ لَا مُتَقَوِّمٌ، فَلِذَا فَسَدَ الْبَيْعُ بِجَعْلِهَا ثَمَنًا، وَإِنَّمَا لَمْ يَنْعَقِدْ أَصْلًا بِجَعْلِهَا مَبِيعًا
Raddul Muhtār (Vol.4, pg.501, Dār Al-Fiqr)
وَقَدَّمْنَا أَوَّلَ الْبُيُوعِ أَنَّ الدَّرَاهِمَ الْبُخَارِيَّةَ فُلُوسٌ عَلَى صِفَةٍ مَخْصُوصَةٍ، فَلِذَا أَوْجَبَ الْقِيمَةَ إذَا كَانَتْ لَا تُنْفَقُ فِي ذَلِكَ الْبَلَدِ لِبُطْلَانِ الثَّمَنِيَّةِ بِالْكَسَادِ، كَمَا قَدَّمْنَاهُ وَبِهَذَا ظَهَرَ أَنَّهُ لَوْ كَانَتْ الدَّرَاهِمُ فِضَّتُهَا خَالِصَةٌ أَوْ غَالِبَةٌ كَرِيَالِ الْفِرِنْجِيِّ فِي زَمَانِنَا فَالْوَاجِبُ رَدُّ مِثْلِهَا، وَإِنْ كَانَا فِي بَلْدَةٍ أُخْرَى، لِأَنَّ ثَمَنِيَّةَ الْفِضَّةِ لَا تَبْطُلُ بِالْكَسَادِ، وَلَا بِالرُّخْصِ أَوْ الْغَلَاءِ…
Raddul Muhtār (Vol.5, pg.163, Dār Al-Fiqr)
وَيَنْبَغِي أَنَّهُ لَا خِلَافَ فِي أَنَّهُ لَا يَبْطُلُ الْبَيْعُ بِكَسَادِهَا، وَيَجِبُ عَلَى الْمُشْتَرِي مِثْلُهَا فِي الْكَسَادِ، وَالِانْقِطَاعِ وَالرُّخْصِ وَالْغَلَاءِ، أَمَّا عَدَمُ بُطْلَانِ الْبَيْعِ، فَلِأَنَّهَا ثَمَنٌ خِلْقَةً فَتَرْكُ الْمُعَامَلَةِ بِهَا لَا يُبْطِلُ ثَمَنِيَّتَهَا فَلَا يَتَأَتَّى تَعْلِيلُ الْبُطْلَانِ الْمَذْكُورُ، وَهُوَ بَقَاءُ الْبَيْعِ بِلَا ثَمَنٍ.
Raddul Muhtār (Vol.4, pg.534, Dār Al-Fiqr)
https://www.bankofengland.co.uk/explainers/what-is-money
Only Allah (عز و جل) knows best.
Written by Alimah Maryam Badshah
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
