Use Of Digital And Virtual Currency. (Review In The Context Of Islamic Sharia)

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Sana Ur Rehman , Dr. Salman Ahmad Khan ,Ms.Aneeba Basharat ,Hafiz Wahaib ur Rehman Naeem , Hafiz Hussnain Khaliq


Currency is one of the most important economic issues nowadays. Currency is the backbone of economic affairs. It is impossible to run the country's economic system without currency. In the 20th century, new standards of currency value were set. Back then, gold and silver were abolished, and tied to the market value of any country, and the market value was tied to the dollar.

After the introduction of computers in the banking system in the 1960s, new aspects of using paper currency were also introduced, such as digital use of government-approved currency through credit cards, debit cards, mobile apps, etc. It took some time, then the innovations of Easy Paya, Jazz Cash, and U Paisa were introduced. At the beginning of the 21st century, a new form of currency was introduced, which was named virtual currency.

               Virtual currency has two parts. 1-Encryption. 2-Blockchain. And there are many types of encryption. There are three types depending on the use of blockchain. Virtual currency is created by combining encryption and blockchain. According to the use of these currencies, there are three types. Any type of virtual currency is used only with electronic devices. And these electronic devices are not common, they are specific. And this currency is also not common.

            There are several Shariah prohibitions, in terms of creating virtual currency and using it as a medium of exchange. No government permission, virtual currency has no personal value, virtual currency includes an element of uncertainty, virtual currency is valued in dollars. It is associated with and varies from country to country on the value of the dollar, the holder of virtual currency will take it and sell it where the price is good, there is an element of gambling in it, virtual currency does not have the status of an alias. The number of people using it as a tool of exchange is 3 to 5%.

               There are also disadvantages in using virtual currency as property. Virtual currency is an immaterial asset, video, naat, recitation, film etc. but the nature of virtual currency is different, virtual currency as property does not fulfill Shariah rules and regulations. 3. Virtual currency is not a property. This property is not included in Shari'a and Sati rules, it is not known to anyone except the user of the secret of its use.

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