Tech Trends & News

Blossom Finance Said Bitcoin ‘Halal’ and Sharia Accordingly

bitcoin halal

A researcher concludes bitcoin in the viewpoint of sharia law. The results boosted the exchange rate of Bitcoin up to US $ 1,000 in just one hour.

The study comes from Muhammad Abu-Bakar who works for Blossom Finance in Indonesia. The study’s focus is on whether Bitcoin and other crypto currencies are compatible with the definition of money in sharia law.

In that study, Bitcoin’s position is already recognized as a currency in Germany so it qualifies halal in the country. “Bitcoin is allowed because it is valued in a global trading center and accepted as payment in many traders,”.

The study also refers to the fact that Bitcoin is now relatively accepted by individuals as a medium of personal transaction exchange.

The conclusion of the matter of halal and sharia according to Abu Bakar’s study is expected to develop the potential of Bitcoin around the world, especially for Muslims amounting to 1.6 billion.

“Some of the fatwas issued by prominent Muslim researchers have previously offered incomplete and contradictory opinions on this topic,” said Blossom Finance CEO Matthew Martin as quoted by The Independent on Friday (13/4).

Martin calls this research aimed at providing clear guidance supported by solid research that helps laypeople and sharia finance practitioners.

Increase Exchange Rates

Before the conclusion of this research emerged, the exchange rate of Bitcoin skyrocketed on 12 April. Within an hour alone, its value increased by US $ 1,000. This makes it the biggest transaction in an hour.

The news that this halal Bitocin can be predicted could increase its exchange rate even further.

Blossom Finance is a pioneering company that provides Islamic finance for micro businesses through Bitcoin. The company is based in the United States but also has offices in Jakarta.

The company is led by Matthew J. Martin, as President and CEO of Blossom Finance. While Mufti Muhammad Abu Bakar himself is Head of Sharia Compliance.