Virtual Currencies in Light of the Multi-Stage Ijtihad Model in Financial Jurisprudence

Abstract

Virtual currency, as one of the newly emerging subjects and a novel form of money in the global economy known as cryptocurrency, was introduced in 2009 to facilitate financial transactions and create a medium of exchange without intermediaries, in response to financial crises and widespread distrust in central institutions. This study employs a descriptive-analytical method to examine the relevant jurisprudential principles and the multi-stage ijtihad approach concerning Bitcoin. The findings indicate that, based on multi-stage ijtihad, from the perspective of individual jurisprudence, Bitcoin qualifies as a form of property (māl), its mining is not prohibited, and transactions involving it are neither usurious (ribā) nor based on excessive uncertainty (gharar). Therefore, transactions using virtual currencies are religiously valid and permissible. However, from the standpoint of governmental jurisprudence, and based on principles such as the rule of no harm (lā ḍarar) and the rule of justice (ʿadāla), until regulatory frameworks and legal mechanisms for controlling virtual currencies within the national economy are established, it is necessary to prevent transactions involving such currencies. Nevertheless, under current sanction conditions, and considering the opportunity to generate income and employment for related graduates, the use and mining of virtual currencies are deemed permissible if directed toward national interests and bypassing sanctions. Furthermore, given that Bitcoin is classified as property, the legal rulings associated with property will also apply to it.