Recently, one of my fintech students (Nadiyah Syahira Nordin) wrote a really nice article about Cryptocurrency From Shariah Perspective. I thought I will share it with you. You can find the paper in the IIiBF website and the paper .
Cryptocurrency is seen to create a new phenomenon to the landscape of financial services industry. It has gained attention in attracting all relevant players in the industry to delve deeper into the issue. Preceding bitcoin as the inaugural prevalent product, cryptocurrency has been utilized as the medium of payment in various sectors. Owing to that factor, it is conceivable why it is taken as a new phenomenon. Islamic finance, being an integral part of financial industry, also concerned about this new emergence. The usage of cryptocurrency penetrated Islamic finance through the introduction of Mudharabah-based offering for small enterprises by Blossom Finance. Owing to this observance, this calls for an academic approach of cryptocurrency analysis from Shariah perspective. This is due to the reason that practices in Islamic finance without proper Shariah deliberation may run the risk of noncompliance. This research sought to identify the concept of cryptocurrency from its features and process. The technical features comprising of validating mechanism, mathematical algorithm and coins supply are analysed in the context of the fulfilment of currency prerequisites from Shariah perspective.