Cryptocurrency from the Perspective of Islamic Economic Ethics

Abstract

This study analyzes cryptocurrency from the perspective of Islamic economic ethics, focusing on users’ perceptions, understanding, and attitudes toward these digital assets. The phenomenon of the increasing use of cryptocurrency among Muslim communities raises various questions regarding its compatibility with the principles of Islamic economic ethics, such as justice, transparency of transactions, and the prohibition of riba, gharar, and maysir. Therefore, this study aims to identify how cryptocurrency is understood and evaluated based on the perspective of Islamic economic ethics in modern economic practice. This study employs a descriptive quantitative approach using a survey method. Data were collected via a questionnaire distributed to respondents who possess knowledge of or have previously transacted using cryptocurrency. The data analysis techniques used include descriptive statistics to illustrate trends in respondents’ perceptions, as well as percentage analysis to assess the level of acceptance of cryptocurrency from the perspective of Islamic economic ethics. The results of the study indicate that the majority of respondents perceive cryptocurrency as a modern financial technology innovation; however, there remains uncertainty regarding compliance with the principles of Islamic economic ethics. High price volatility, speculative risks, and value uncertainty are the primary reasons for respondents’ caution in addressing this issue. Nevertheless, some respondents believe that the blockchain technology underlying cryptocurrency has the potential to support a more transparent and efficient financial system if regulated in accordance with appropriate Sharia principles. As a result, cryptocurrency is still viewed as a controversial topic within Islamic economic ethics, necessitating further education, regulation, and research to ensure its use aligns with the maqashid al-Sharia.