In accordance with Islamic Sharia, trading of the most prominent cryptocurrency bitcoin is wrongful. Such a statement recently made the Grand Mufti of Egypt Shawki Allam.
As Ahram reported, Allam in his official fatwa called bitcoin trading unlawful as long as it is not accepted as lawful means of exchange by legitimate Egyptian establishments.
The Mufti also added that his legal opinion was subsequent to the advice of a group of economy specialists. That’s why he finally emphasized that this digital coin is not liable to the Egyptian government.
So Unlawful Or Not?
Moreover, Allam believes that bitcoin jeopardizes the state’s own currency – Egyptian Pound. Bitcoin, as it grows in value fast, may turn the national currency of this country into a volatile one.
He also expressed his massive concern over the capacity of bitcoin to enhance money laundering and smuggling trade. Allam is sure that this cryptocurrency may negatively influence the safety of traders.
The Mufti confirmed that because of bitcoin, now the Egyptian government will have to start securing currency exchange. Furthermore, the state’s authorities will have to monitor internal and external financial performances.
The religious pundit also compared bitcoin trade to gambling when weighed in financial issues. It is necessary to mention that this kind of activity is prohibited in Islam. Allam explained that trading of bitcoin might ruin people as human beings.
Official Egypt’s Position
Nevertheless, official Egypt remains silent. Neither has it banned the use of bitcoin, as it has been done in such countries as Bangladesh and Bolivia nor has it embraced is, following the example of such bitcoin-friendly states as Sweden and Japan.
Meanwhile, Egypt’s Central Bank time and again has claimed that it doesn’t accredit digital coins, which are conquering the world’s financial market. At the same time, the Financial Regulatory Authority of Egypt piling into bitcoin is treated as a sort of fraud.