An Evaluation of Bitcoin From Shariah Perspective


  • Zaki Ahmad School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia
  • Mahvish Nawaz Mokal School of Language, Civilisation and Philosophy, University Utara Malaysia
  • Ikhlas al- Amatullah INCEIF, the Global University of Islamic Finance, Malaysia
  • Mohamed Normen Ahamed Mafaz Graduate School of Management (GSM), Management and Science University



Blockchain, Cryptocurrency, Bitcoin, Shariah


Bitcoin is one of the most successful cases of blockchain use. The objective of this paper is to examine the characteristics of cryptocurrencies, with a specific emphasis on bitcoin. The fundamental attributes, features of bitcoin and how they operate on blockchain are evaluated from the Shariah perspective to determine if they are consistent with Shariah principles. To accomplish the objective, the authors adopted a qualitative secondary analysis (QSA) approach by utilizing the existing data.


Abozaid, A., & Khateeb, S. H. (2021). The Shariah Recognition of Cryptocurrencies and Their Usability for Waqf. In: Waqf Development and Innovation. Routledge.

Abubakar, Y. S., Ogunbado, A. F., & Saidi, M. A. (2018). Bitcoin and its Legality from Shariah Point of View. SEISENSE Journal of Management, 1(4), 13–21.

Adrian, T., & Mancini-Griffoli, T. (2021). The Rise of Digital Money. Annual Review of Financial Economics, 13(1), 57-77.

Akbar, M. A. (2022). Towards an Interpretation of Cryptocurrency as a Commodity from Maqasid al-Shari’ah Perspective. International Journal of Islamic Economics and Finance Research, 5(2), 99-112.

Ahmad, Z., Zahir, F., Usman, A. M., Muneeza, A., & Mustapha, Z. (2020). An exploratory study on the possibility of replacing tawarruq based Islamic banking products using other alternatives. International Journal of Management and Applied Research, 7(2), 147-164.

Ahmad, Z., Muneeza, A., Rahman, M. M., & Mahomed, Z. (2023). A Comparative Analysis of Shariah Governance Framework of Islamic Bank in Malaysia and Pakistan. Talaa: Journal of Islamic Finance, 3(1), 01-17.

Ahmad, Z., Rahman, M. M., & Khan, I. (2023). An Insight into Investment and Deposit Products Offered by Islamic Banks in Malaysia. Al-Hikmah: International Journal of Islamic Studies And Human Sciences, 6(1), 1-28.

Aljabr, A. A., Avinash, S., & Kailash, K. (2019). Mining Process in Cryptocurrency Using Blockchain Technology: Bitcoin as a Case Study. Journal of Computational and Theoretical Nanoscience, 16(10), 4293-4298.

Al-Saati, A. (2003). The Permissible Gharar (Risk) in Classical Islamic Jurisprudence. Journal of King Abdulaziz University: Islamic Economics, 16(2).

Al-Suwailem, S. (2000). Towards an Objective Measure of Gharar in Exchange. Islamic Economic Studies, 7(1).

Amanzholova, S., Tastan, N., Kalkamanova, K., & Yessenalina, A. (2020). Valid and Invalid Bitcoin Transactions. In: Proceedings of the 6th International Conference on Engineering & MIS (ICEMIS’20) 2020 (pp. 1-5). Association for Computing Machinery, New York, NY, United States.

Amsyar, I., Christopher, E., Dithi, A., Khan, A. N., & Maulana, S. (2020). The Challenge of Cryptocurrency in the Era of the Digital Revolution: A Review of Systematic Literature. Aptisi Transactions on Technopreneurship, 2(2), 153–159.

Armstrong, P., & Siddiqui, K. (2020). The Case for the Ontology of Money as Credit: Money as Bearer or Basis of “Value”. Real-World Economics Review, (90), 98-118.

Arslanian, H. (2022). Crypto Exchanges. In: The Book of Crypto. Palgrave Macmillan, Cham.

Astuti, I. D., Rajab, S., & Setiyouji, D. (2022). Cryptocurrency Blockchain Technology in the Digital Revolution Era. APTISI Transactions on Technoepreneurship, 4(1), 9-15.

Ayedh, A., Echchabi, A., Battour, M., & Omar, M. (2021). Malaysian Muslim Investors’ Behaviour Towards the Blockchain-based Bitcoin Cryptocurrency Market. Journal of Islamic Marketing, 12(4), 690-704.

Bahar, M. (2022). The Use of Cryptocurrency in Indonesia According to Islamic Law. International Journal of Artificial Intelligence Research, 6(1).

Baur, D.G., & Dimpfl, T. (2021). The Volatility of Bitcoin and its Role as a Medium of Exchange and a Store of Value. Empirical Economics, 61, 2663–2683.

Bavadekar, R. (2023). Digital Rupee – Emergence of New Monetary Era. Multi-Disciplinary Journal, 1(1), 1-5. http://localhost:8080/xmlui/handle/123456789/12252

Belke, A., & Beretta, E. (2020). From Cash to Central Bank Digital Currencies and Cryptocurrencies: A Balancing Act Between Modernity and Monetary Stability. Journal of Economic Studies, 47(4), 911-938.

Besson, F. (1999). E-Money A New Private Currency? Haupt.

Brown, M. A. (2019). Cryptocurrency and Financial Regulation: The SEC’s Rejection of Bitcoin-Based ETPs. North Carolina Banking Institute Journal, 23(1), 139-157

Caliskan, K. (2020). Platform Works as Stack Economization: Cryptocurrency Markets and Exchanges in Perspective. Sociologica: International Journal for Sociological Debate, 14(3), 115-42.

CNBC. (2021). Satoshi Nakamoto’s Bitcoin Holding: Here’s How Much It Is Worth Now.

CoinGecko (2023). Global Cryptocurrency Market Cap Charts.

Cumming, D. J., Johan, S., & Pant, A. (2019). Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty. Journal of Risk and Financial Management,12(3).

Danielsson, J. (2019). Cryptocurrencies: Policy, Economics and Fairness (Systemic Risk Centre Discussion Paper No. 86).

Deloitte. (2022). Merchants Getting Ready for Crypto: Merchant Adoption of Digital Currency Payments Survey.

Dorofeyev, M., K?sov, M., Ponkratov, V., Masterov, A., Karaev, A., Vasyunina, M. (2018). Trends and Prospects for the Development of Blockchain and Cryptocurrencies in the Digital Economy. European Research Studies Journal, 21(3), 429-445.

Dotan, M., Pignolet, Y. A., Schmid, S., Tochner, S., & Zohar, A. (2020). SOK: Cryptocurrency Networking Context, State-of-the-Art, Challenges. In: Proceedings of the 15th International Conference on Availability, Reliability and Security (ARES’20) 2020 (pp. 1-13). Association for Computing Machinery, New York, NY, United States.

Ertz, M., & Boily, E. (2019). The Rise of the Digital Economy: Thoughts on Blockchain Technology and Cryptocurrencies for the Collaborative Economy. International Journal of Innovation Studies, 3(4), 84-93.

Erwin, W., Majid, S. A., Handayani, R., & Riady, D. K. (2022). Study of Literature Financial Technology, Blockchain, and Islamic Finance. International Journal of Educational Review, Law & Social Sciences, 2(1), 21-32.

Ensonhaber (2017). High Council of Religious Affairs: Bitcoin is Not Suitable.

European Banking Authority. (2014). EBA Opinion on ‘Virtual Currencies’. 08+Opinion+on+Virtual+Currencies.pdf

European Central Bank. (2012). Virtual Currency Schemes.

Financial Action Task Force. (2014). Virtual Currencies Key Definitions and Potential AML/CFT Risks.

Fullmer, D., & Morse, A. S. (2018). Analysis of Difficulty Control in Bitcoin and Proof-of-Work Blockchains. 2018 IEEE Conference on Decision and Control (CDC), Miami, FL, United States.

Gaies, B., Nakhli, M. S., Sahut, J., & Schweizer, D. (2023). Interactions Between Investors’ Fear and Greed Sentiment and Bitcoin Prices. The North American Journal of Economics and Finance, 67.

Gamage, H. T. M., Weerasinghe, H. D., & Dias, N. G. J. (2020). A Survey on Blockchain Technology Concepts, Applications, and Issues. SN Computer Science, 1(114).

Gaol, L., Morales, C. P., & Lopez, V. (2023). Juridical Review Concerning the Legitimacy of Cryptocurrency in Islamic Law. At-Tasyrih: Jurnal Pendidikan Dan Hukum Islam, 8(2), 115-125.

Garg, R. (2023). Blockchain for Decentralized Finance: Impact, Challenges and Remediation. International Journal of Computer and Information Engineering, 17(3), 224-237.

Hazari, S. S., & Mahmoud, Q. H. (2019). A Parallel Proof of Work to Improve Transaction Speed and Scalability in Blockchain Systems. 2019 IEEE 9th Annual Computing and Communication Workshop and Conference (CCWC), Las Vegas, NV, United States.

Hellani, H., Samhat, A. E., Chamoun, M., Ghor, H. E., & Serhrouchni, A. (2018). On BlockChain Technology: Overview of Bitcoin and Future Insights. 2018 IEEE International Multidisciplinary Conference on Engineering Technology (IMCET), Beirut, Lebanon.

Hoang, Y. H., Nguyen, T. H., Vu, N. B., Nguyen, T. T., & Tran, H. T. (2021). Toward Successful Bank-Fintech Partnerships: Perspectives from Service Providers in an Emerging Economy. Asian Social Science, 17(6), 19-28.

International Monetary Fund. (2022). Regional Economic Outlook Report for Sub-Saharan Africa.

Jagtiani, J., Papaioannou, M., Tsetsekos, G., Dolson, E., & Milo, D. (2021). Cryptocurrencies: Regulatory Perspectives and Implications for Investors. In: R. Rau, R. Wardrop & L. Zingales (Eds.), The Palgrave Handbook of Technological Finance (pp. 161-186). Palgrave Macmillan, Cham.

Jamsheer, M., & Muhsina, P. V. (2018). Islamic Implications of Crypto Currency and Bitcoin: An Interpretation of Blockchain Technology [Special Issue], International Journal of Emerging Technologies and Innovative Research, 56-59.

Jasinski, L., Sielska, A., & Turowski, K. (2023). Mengerian Economics. Edward Elgar.

Kermitsis, E., Kavallieros, D., Myttas, D., Lissaris, E., & Giataganas, G. (2021). Dark Web Markets. In: B. Akhgar, M. Gercke, S. Vrochidis, H. Gibson (Eds.), Dark Web Investigation (pp. 85-118). Springer, Cham.

Kethineni, S., & Cao, Y. (2020). The Rise in Popularity of Cryptocurrency and Associated Criminal Activity. International Criminal Justice Review, 30(3), 325–344.

Khan, R., & Hakami, T. A. (2022). Cryptocurrency: Usability Perspective versus Volatility Threat. Journal of Money and Business, 2(1), 16-28.

Khan, S., & Rabbani, M. R. (2022). In-depth Analysis of Blockchain, Cryptocurrency and Sharia Compliance. International Journal of Business Innovation and Research, 29(1), 1-15.

Kharif, O. (2021). The Bitcoin Whales: 1,000 People Who Own 40 Percent of the Market. Bloomberg.

Kregel, J. (2021). The Economic Problem: From Barter to Commodity Money to Electronic Money [Levy Economics Institute Working Papers Series].

Kshetri, N. (2020). Blockchain-Based Financial Technologies and Cryptocurrencies for Low-Income People: Technical Potential Versus Practical Reality. IEEE Access, 53(1), 18-29.

Lateh, N., & Rejab, S. N. M. (2021). Sharia Issues About Bitcoin Cryptocurrency Transactions. Enhancing Halal Sustainability (pp. 119-128), Springer, Singapore.

Manimuthu, R. A., Sreedharan V., R. G., & Marwaha, D. (2019). A Literature Review on Bitcoin: Transformation of Crypto Currency into a Global Phenomenon. IEEE Engineering Management Review, 47(1), 28-35. https:/

McKinsey. (2022). What is Blockchain?

Messari. (2020). Money Laundering in Cryptocurrency How Criminals Moved Billions in 2019.

Meunier, S. (2018). Blockchain 101: What is Blockchain and How Does This Revolutionary Technology Work? In: C. Halder (Eds.), Transforming Climate Finance and Green Investment with Blockchains (pp. 23-34). Academic Press, New York, NY, United States.

Mokal, M. N., & Abd Halim, H. (2023). An Analysis of Lexico-Semantic Variations in Pakistani English Newspaper Corpus. World, 13(6).

Muneeza, A., & Mustapha, Z. (2019). Blockchain and Its Shariah Compliant Structure. In: M. Billah (Eds.), Halal Cryptocurrency Management (pp. 69-106), Palgrave Macmillan, Cham.

Murty, V. K. (2019). Digital Gold and Cryptocurrency. In: V. Lakshman & B. Gorain (Eds.), Innovations and Breakthroughs in the Gold and Silver Industries (pp. 265–276). Springer, Cham.

Narayanan, H. (2020). Is Future a Rule of Digital Currency? International Journal of Research-Granthaalayah, 8(8), 96-106. layah.v8.i8.2020.935

Neti, L. V. (2022). Exploring the Implications of Cryptocurrencies in Selected Developing Countries [Penn Working Paper].

Niranjanamurthy, M., Nithya, B.N., & Jagannatha, S. (2019). Analysis of Blockchain Technology: Pros, Cons and SWOT. Cluster Computing, 22(6), 14743–14757.

Olowolayemo, A., Mpawenimana, A. S., Tang, S. Y., & Adewale, N. (2023). Understanding the Determinants of Cryptocurrencies Adoption Among Young Malaysians. Journal of Information Systems and Digital Technologies, 5(1), 60–75.

Oziev, G., & Yandiev, M. (2018). Cryptocurrency from Shari’ah Perspective.

Pa, E. A., & Hasan, H. (2021). The Implementation and Shariah Views on Cryptocurrency in Malaysia: A Survey Study. 2021 FKP Postgraduate Research Colloquium, Kelantan, Malaysia.

Panda, P. C., & Jani, N. (2019). Growth of Cryptocurrency and Illegal Activities. 5th International Conference on Economic Growth and Sustainable Development: Emerging Trends, Mysuru, India.

Patel, N. P., Parekh, R., Thakkar, N., Gupta, R., & Tanwar, S. (2022). Fusion in Cryptocurrency Price Prediction: A Decade Survey on Recent Advancements, Architecture, and Potential Future Directions. IEEE Access, 10, 34511-34538.

Prayogo, G. (2018). Bitcoin, Regulation and the Importance of National Legal Reform. Asian Journal of Law and Jurisprudence, 1(1), 1-9.

PwC. (2018). Making Sense of Bitcoin, Cryptocurrency and Blockchain.

Qian, Y., Zhang, H., Liu, J., Ma, H., Li, X., Xi, X. (2023). Advances on External Machine Computing Power Focusing on Internal Personal Value: A Case Study on the New Digital Currency. Mathematics, 11(11).

Rahardja, U., Aini, Q., Harahap, E. P., & Raihan, R. (2021). Good, Bad and Dark Bitcoin: A Systematic Literature Review. Aptisi Transactions on Technopreneurship, 3(2), 115–119.

Saleh, H. A. B., Ibrahim, A. A., Noordin, M. F., & Mohadis, H. M. (2020). Islamic Approach Toward Purification of Transaction with Cryptocurrency. Journal of Theoretical and Applied Information Technology, 98(6), 1050-1067.

Scharding, T. (2019). Is Bitcoin Trustworthy? In: J.J. Choi & B. Ozkan (Eds.), Disruptive Innovation in Business and Finance in the Digital World (International Finance Review, 20, 151-165. Emerald Publishing Limited, Bingley, England.

Schilling, L. M., & Uhlig, H. (2019). Currency Substitution under Transaction Costs. AEA Papers and Proceedings, 109, 83-87.

Sekaringsih, R. B., & Al-Banna, H. (2022). Does a Cryptocurrency Comply with Shariah? Empirical Evidence from ARCH-GARCH Economic Model. Global Review of Islamic Economics and Business, 10(2), 15-27.

Shovkhalov, S., & Idrisov, H. (2021). Economic and Legal Analysis of Cryptocurrency: Scientific Views from Russia and the Muslim World. Laws, 10(2).

Siddique, M. S., & Shah, H. S. (2021). Blockchain and Cryptocurrency for Islamic Finance: A Perspective of Scholars. Al-Qamar, 4(1), 207-22.

Siddiqui, K. (2019). The Political Economy of Essence of Money and Recent Development. International Critical Thought, 9(1), 85-108.

Siswantoro, D., Handika, R., & Mita, A. F. (2020). The Requirements of Cryptocurrency for Money, an Islamic View. Heliyon, 6(1).

Srivastava, G., Dhar, S., Dwivedi, A. D., & Crichigno, J. (2019). Blockchain Education. 2019 IEEE Canadian Conference of Electrical and Computer Engineering (CCECE), Edmonton, AB, Canada.

Sukumaran, S., Bee, T. S., & Wasiuzzaman, S. (2022). Cryptocurrency as an Investment: The Malaysian Context. Risks 2022, 10(4).

Taskinsoy, J. (2020). From Primitive Barter to Inflationary Dollar: A Warless Economic Weapon of Mass Destruction.

Triple-A (2023). Cryptocurrency Ownership Data.

Wachira, V. K., & Wachira, E. W. (2021). Digital Currencies and Their Potential to Disrupt and Replace Flat Money: The Case of Bitcoins. European Journal of Economic and Financial Research, 5(1).

Xiao, S., Wang, H., & Zhang, J. (2021). New Digital Signature Algorithm based on ECC and its Application in Bitcoin and IoT. International Journal of High Performance Systems Architecture, 10(1), 20-31.

Xu, Z., & Zou, C. (2020). What Can Blockchain Do and Cannot Do? China Economic Journal, 14(1), 4-25.

Yermack, D. (2014). Is Bitcoin a Real Currency? An Economic Appraisal (NBER Working Paper No. 19747).

Zhang, L., Xie, Y., Zheng, Y., Xue, W., Zheng, X., & Xu, X. (2020). The Challenges and Countermeasures of Blockchain in Finance and Economics. Systems Research and Behavioral Science, 37(4), 691-698.

Zhang, W., Wang, P., Li, X., & Shen, D. (2018). Some Stylized Facts of the Cryptocurrency Market. Applied Economics, 50(55), 5950-5965.

Zohuri, B., Nguyen, H. T., & Moghaddam, M. (2022). What is Cryptocurrency? Is it a Threat to Our National Security, Domestically and Globally? International Journal of Theoretical & Computational Physics, 3(1), 1-14.




How to Cite

Ahmad, Z. ., Mokal, M. N. ., Amatullah, I. al-., & Mafaz, M. N. A. . (2023). An Evaluation of Bitcoin From Shariah Perspective. Review of Applied Management and Social Sciences, 6(2), 459-480.