A fatwa has been issued in Indonesia, the country with the largest Muslim population in the world. Tajdeed, chairman of the Tarajih Council and the Mohammediyah Central Executive Board, which is affiliated with the Muhammadiyah Society, one of Indonesia’s important Islamic non-governmental organizations, said that cryptocurrencies are haram according to Sharia. Stating that Muslims should refrain from investing in or using cryptocurrencies, Tajdid said, “The reasons why cryptocurrencies are haram are instability and lack of government support.” In a statement on the Preference Council’s website, “Cryptocurrencies are haram both as an investment and as a medium of exchange. Currencies such as bitcoin are not backed by an asset and are uncertain.
Became the third Islamic organization to say “Haram”
On the other hand, Muhammadye became the third Islamic institution in Indonesia to issue a fatwa against the use of cryptocurrencies. Earlier, in October 2021 the Nahdalatul Ulama (NU) and the country’s highest religious body Indonesian Ulema Council (MUI) announced crypto as a transaction tool in November 2021.
Although fatwas from Islamic organizations are not legally binding, it has been said that in Indonesia, which has a large Muslim population, the public may refrain from investing in or using digital assets because of these fatwas.
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