Title: In-depth analysis of blockchain, cryptocurrency and sharia compliance

Authors: Shahnawaz Khan; Mustafa Raza Rabbani

Addresses: Faculty of Engineering, Design and Information and Communications Technology, Bahrain Polytechnic, Bahrain ' Department of Economics and Finance, College of Business Administration, University of Bahrain, Bahrain

Abstract: The high return on cryptocurrency has not only attracted the Muslim investors but it has also provided an opportunity for the Muslim entrepreneurs to raise funds by issuing the online coin. Most of the scholars believe that blockchain technology is consistent with sharia requirements. Still, cryptocurrency is considered controversial and declared haram by most of the sharia scholars. Against such a backdrop, the present study tries to achieve two objectives. The first objective of this study is to investigate the technical architecture of blockchain technology and its application in cryptocurrencies. The second objective of the study is to find out the sharia compliance of the cryptocurrency and online tokens like Bitcoin.

Keywords: blockchain; Merkle tree; cryptocurrency; disruptive technology; financial technology; FinTech; digital banking; financial innovation; Bahrain; Bitcoin.

DOI: 10.1504/IJBIR.2022.125657

International Journal of Business Innovation and Research, 2022 Vol.29 No.1, pp.1 - 15

Received: 07 Apr 2020
Accepted: 21 Jul 2020
Published online: 26 Sep 2022 *

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