Salaam all, (I am keeping this question uncategorized because I dont think any of the available categories are relevant)
Reference to this youtube video interview with Harris Irfan:
There was a significantly detailed discussion about Bitcoin and how it can be used for Islamic Finance.
At one point during the discussion, the host (is it Ibrahim or Mohsin? - I am new to the channel) suggests the idea of gold backed Bitcoin…which Harris said he wasnt averse to the idea but then the discussion continued on how Bitcoin itself, without being backed by any physical asset, can be fully used as a halal currency in Islamic Finance.
Based on my research, I agree that Bitcoin meets all the requirements of money and CAN be used as a replacement of money, but it has no intrinsic value like Gold.
My questions are:
- What is the importance of money having intrinsic value - either Gold, or backed by Gold or anything else with intrinsic value, in Islamic Finance? Please provide examples from Quran, hadith and/or Islamic History to support your answer.
- Bitcoin allows/enables/supports anonymity of it’s holder, which allows the holder to transact anonymously…and also allows the holder to hide his wealth…however, Gold, by itself, does not allow/enable/support anonymity…the holder can hide it or keep it safe, but he cannot transact with it anonymously…he or she can transact indirectly, but not anonymously…what is the importance of this difference between Bitcoin and Gold in being used in Islamic Finance? Again, Please provide examples from Quran, hadith and/or Islamic History to support your answer.
- Lastly, there was a long discussion on governments, banks etc, what, in your opinion, is the role of anonymity and secrecy in having wealth and enabling riba and the modern financial system?
Hoping for a detailed response.
JazakAllah