Islamic law may Hinder Bitcoin Growth in the Middle East

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In the Western world, we hardly care about the impact of Bitcoin from a religious point of view. In the Eastern countries, that situation is often different.Especially when it comes to Islamic law, things are not clear-cut whatsoever. According to one Egyptian religious leader, the trading of Bitcoin is unlawful. This can become a very big problem for the future growth of Bitcoin and other cryptocurrencies. For now, it seems to have very little impact on the market.

It is evident Islamic law is very different from what we are used to in the Western world. From a financial point of view, things are not clear-cut whatsoever. Especially when it comes to new forms of money, there are some hurdles to keep tabs on. Contrary to what most people would expect, this doesn’t bode well for Bitcoin and cryptocurrencies. Especially the trading aspect of this form of money can be considered to be a violation of Islamic law.

Islamic law Clashes With the Bitcoin Concept

Shawki Allam, a religious leader in Egypt is growing concerned over this development. More specifically, he made these comments publicly through a fatwa. Although this “advice’ is not legally binding whatsoever,it still carries a lot of weight. More importantly, this is the first warning of this kind to impact the Islamic world in regards to Bitcoin. If cryptocurrency trading were to be outlawed, things would get very interesting.  The past few years have not been easy for most cryptocurrencies regardless of religious beliefs.

There are quite a few concerns when it comes to trading cryptocurrencies. Notorious volatility, the pseudonymous aspect, and the potential for evading taxes should not be taken lightly. Although none of the facts inherently hinder the growth of cryptocurrencies, they are in violation of Islamic law. It is evident this topic will be touched upon quite a few times in Islamic circles moving forward. Whether or not it will lead to additional regulation, remains to be determined.

At the same time, Egypt is not known for its open-mindedness when it comes to Bitcoin. The local central bank has no plans to let anyone conduct cryptocurrency transactions moving forward. Dealing with virtual currencies is considered to be a major risk which needs to be avoided. Using this religious aspect to emphasize that point seems to be a logical course of action. For now, it remains to be seen if anything will change in Egypt and neighboring countries. The battle against Bitcoin continues unabated.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.



Islamic law may Hinder Bitcoin Growth in the Middle East