The Shariah Recognition of Cryptocurrencies and their Usability for Waqf

The shariah issues involving cryptocurrencies include the permissibility of dealing with them given that they are not backed by assets, nor their value is guaranteed by any authority or party. This is in addition to their vulnerability to sharp fluctuations in their values and to electronic piracy; not to mention the infeasibility of controlling their use in illegal activities, such as financing the drug trade and so on. Shariah issues also include whether they possess the necessary shariah characteristics of a valid currency such that their circulation may be subjected to riba rules similar to gold, silver and conventional currencies. The chapter also investigates the extent to which the resemblance of cryptocurrencies to money may qualify them for waqf, such that they can be endowed as waqf; whether as a charitable waqf or a family waqf. Since Bitcoin is currently the most popular cryptocurrency, the research takes it as a model in this study.