As the adoption of cryptocurrency grows across the world, so is its criticism. According to the latest ruling of Indonesia’s National Religious Council, the use of crypto assets as a currency is forbidden in Islam, so, Muslims must distance themselves from crypto-related activities.
As recounted by Bloomberg in a report, the National Ulema Council, or MUI, has deemed cryptocurrency as haram, or banned due to its elements of uncertainty, wagering, and harm.
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According to the report, this was made known on Thursday by Asrorun Niam Sholeh, head of religious decrees after the council held an expert hearing.
Sholeh added that if cryptocurrency as a commodity or digital asset can abide by Shariah tenets with clear benefits, then it can be traded by Muslims.
MUI is considered an authority on Sharia in Indonesia, the country with the world’s largest Muslim population. The country’s regulators, like the finance ministry and central bank, are always working with the Council on financial topics, the report said.
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However, the decision of the council does necessarily mean that crypto trading in the country will stop instantly, but the decree could deter Muslims from investing in crypto-assets and make the country’s central bank reconsider issuing digital currency. Bank of Indonesia has been on the issue of CBDC with no tangible progress.
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