Indonesian Religious Organization Issues Decree Banning the Use of Cryptocurrency in the Country’s Muslim Population – Regulated Bitcoin News

Indonesia’s Tarjih Council and Muhammadiyah’s central executive, Tajdid, issued a decree (decree) making it illegal for Muslims in the country to use or invest in cryptocurrencies. Fatwa pointed to volatility and lack of state support as reasons why Muslims must avoid investing in or using cryptocurrencies.

Cryptocurrencies considered too volatile

Tajdid, the central executive of the Indonesian Islamic organization Tarjih Council and Muhammadiyah, issued a fatwa against the use of cryptocurrencies in the Asian country. Months after another Islamic group discouraged the use of cryptocurrencies, the fatwa explained to Muslims the illegality and harm of using cryptocurrencies.

“Tarjih’s fatwa stipulates that cryptocurrencies are illegal both as an investment vehicle and as a medium of exchange,” explained a statement on the Islamic group’s website.

As explained by CNBC Indonesia Report, the Islamic group pointed to the volatility of cryptocurrencies as one of the reasons for the decree. The group argues that because cryptocurrencies like Bitcoin are not asset-backed and are considered obscure, their use by Indonesian Muslims is illegal.

consumer protection issues

In addition to citing concerns about cryptocurrency volatility, the Tarjih conference’s fatwa explained why digital assets such as Bitcoin do not fully meet the conditions required to be considered a medium of exchange. The organization’s decree states:

The use of Bitcoin as a medium of exchange itself is not only not legalized in our country, but no official body is responsible for it. Not to mention when we talk about the protection of consumers using Bitcoin.

The Tarjih parliament’s fatwa is the latest move against cryptocurrencies by Indonesia’s Islamic group, which banned cryptocurrencies in November 2021. explain In the ban, MUI likewise highlighted the hazards and uncertainties associated with cryptoassets.

Although Islamic organizations’ decrees are not legally binding, they can still prevent Indonesia’s predominantly Muslim population from investing in or using digital assets.

What’s your take on this story? Let us know what you think in the comments section below.

Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively on the economic woes of some African countries and how digital currencies can offer Africans an escape route.

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