Ethereum (ETH) is Halal and Shariah compliant
Photo Amanie Advisors
Ethereum (ETH) is Halal and Shariah compliant.
This is the conclusion from a study by Amanie Advisors who published a white paper certifying that the native Ethereum cryptocurrency, Ether (ETH), is Shariah compliant.
The paper, written by Amanie Advisors, states that since Ether is a utility token, mainly used to power the network, Shariah laws on currency do not apply.
Amanie Advisors presents itself as a Shariah consulting firm specializing in Islamic finance solutions, which covers a wide range of services, including Shariah, training, research and development for institutional and business clients on Islamic financial services.
Amanie Advisors President Mohamed Ali Elgari is a professor of Islamic economics and former director of the Islamic Economic Research Center at King Abdul Aziz University in Saudi Arabia.
They collaborated with the Ethereum Foundation to conduct research on Ethereum (ETH) as a cryptocurrency and on the Ethereum platform to provide views and opinions on Shariah and these topics.
Amanie Advisors is a moderate and respected voice in the Islamic financial community.
The report could convince Muslim developers to develop applications on the Ethereum network.
The advisers indicate in the white paper in particular that:
“Unlike Bitcoin, which does not have a particular function besides being the pledge of the Bitcoin blockchain, Ether is the utility token needed to ensure that the Ethereum platform is working properly and sustainably.”
“Ethereum is therefore a commodity that has some value in the context of the Ethereum ecosystem.
It was not created to become a currency and is not considered to date as a currency based on previous discussions, especially with regard to the functions of money in the Islamic perspective.”
Other schools of Islamic thought may of course disagree with the result of this study.
More conservative schools may have a different or opposite opinion to the one exposed in this white paper declaring Ethereum as Halal and Shariah compliant.
Are cryptocurrencies Halal and Sharia compliant?
We have here the answer for Ethereum (ETH).
You can read on our site the white paper of this Islamic study on Ethereum: Click here.