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Indonesian Religious Council Forbids Muslims from Using Crypto As Currency: Report

Indonesian Religious Council Forbids Muslims from Using Crypto As Currency: Report

The National Religious Council of Indonesia has prohibited Muslims from using cryptocurrencies, claiming that the digital money violates Sharia teachings and therefore not be utilized by Muslims. According to Bloomberg, Asrorun Niam Sholeh, the president of the Indonesian Ulema Council, believes that the internet currency has "elements of uncertainty, betting, and injury," and so violates Islamic law.

This does not, however, imply that bitcoin trading is prohibited in Indonesia. Sholeh's conclusion, however, has far-reaching ramifications and may affect local institutions' adoption of cryptos. It's worth mentioning that Indonesia's Ulema Council decides on Sharia compliance in the nation, and the finance ministry and central bank frequently consult it on Islamic funding matters.

Meanwhile, according to Bloomberg, Bank Indonesia has been considering a central bank digital currency, although no decision has been made yet. According to Coinformant's data, Indonesia has seen a surge in cryptocurrency usage this year, and it now ranks as the world's top "crypto hotspot." In 2021, internet interaction in Indonesia increased by 1,772 percent, as more individuals than ever sought knowledge about digital assets.

"Indonesia will be the world's crypto hotspot in 2021," according to Coinformant experts. "Its interest in cryptocurrency grew at the greatest rate overall." Furthermore, after the Chinese official crackdown, Indonesia's neighbor Singapore had its bitcoin exchange Huobi Global services blocked. Since October, cryptocurrencies have been on a bull run. Ether, Ethereum's native cryptocurrency, is trading at an all-time high of $4,708.60. Similarly, Bitcoin set a new high of $68,000 Wednesday, surpassing the previous peak.

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