Abstract
In an Islamic framework, the scholars need to verify all aspects of the emerging phenomenon known as cryptocurrency. It works as an agent for the prevailing forms of currencies and substitutes the need to carry it everywhere in its physical form which may become a security threat. The theologians have always disapproved what seem to them innovative, alien and working as an agent of change. However, whatever may be their stance about previous innovations, the society had to act otherwise due to the compelling needs that had to be fulfilled. The difference of opinion between the Muslim Scholars about the cryptocurrency has once again divided the Ummah about its acceptance, substituting other forms of currency like fiat currency, plastic currency etc. No doubt these forms of currency have heavily damaged the financial markets due to their speculative nature. It seems that Muslim Ummah is again standing on the cross roads where it is unable to decide its fate. This article presents the basic concept of cryptocurrency & virtual money, its pros & cons, its status regarding Pakistani & Islamic Perspective. At the end, various conclusions and suggestions have been drawn.
Highlights
The financial recessions that hit the global markets over the past two decades has surely let the financial specialist think over about the fact that the medium of transaction like paper money or fiat money has certain flaws that are responsible of cause
The above reasoning may only be workable if Cryptocurrency can replace the prevailing financial tools of trading
Unlike Fiat/traditional paper currency, Crypto or virtual currency is issued by an independent source that can’t be regulated by the regional authoritiy
Summary
The financial recessions that hit the global markets over the past two decades has surely let the financial specialist think over about the fact that the medium of transaction like paper money or fiat money has certain flaws that are responsible of cause. The lost money clearly indicates that the current mediums of exchange are not fit to call as Islamic money because of the fact that it does not fulfils the objectives of Shari’ah; especially when it comes to glorious principal of preservation of money ( Meera, 2018) This whole innovation has been bestowed upon the world by the Research and Development departments dealing with the IT based financial transactions. Dr G.G.Banik who is senior research scholar associates security of the currency as its core feature He defines the term in these words: “A cryptocurrency is a digital or virtual currency that uses cryptography for security purpose. What block chain does is that it records the data of a transaction that if once recorded can never be changed or forgotten and at the same time everyone can retrieve it and it is open for the public access
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