Published: 2018-01-02 12:45
Last Updated: 2018-01-02 14:37
The Bitcoin virtual currency was announced as forbidden in Islam by Egypt’s Dar al-Iftaa (an Egyptian educational institute and government body founded to represent Islam ) on Monday.
Dar al-Iftaa said Bitcoin is harmful to the country on social and economic levels, and that it could break through the national security.
“The currency is used directly to fund terrorists,” Magy Ashour, the Egyptian Grand Mufti’s Counsellor said.
Ashour explained the “Fatwa” (Islamic ruling) by saying “It has no set rules,” which is considered as a contract annulment in Islam.
However, Egypt was not the only country to prohibit Bitcoin.
A Saudi minister has recently announced too that the currency is forbidden as he considered it a form of money that is “vague and gives namelessness to crooks,” according to Middle East Monitor (MEM).
Assim Al-Hakim, who is a Saudi prominent current figure in Islam said that Bitcoin is an open gate for money laundering and drug money.
Bitcoin is a cryptocurrency meaning transactions are made with no middle men - no banks, according to CNN.
As bitcoins are not tied to any country or subject to regulations, international payments are easy and cheap. They can also be used to buy goods anonymously.
Bitcoins started circulating in 2009, and gained popularity recently.
It is currently traded on the Chicago Stock Exchange, while companies like Paypal, Microsoft, Dell and PwC began accepting it as part of their transactions.