Amid Bitcoin’s boom over the world economy, Egypt’s Grand Mufti Shawki Allam in a surprising move issued a fatwa against Bitcoin, saying that trade in cryptocurrency is similar to gambling which is forbidden in Islam.
Adding that Bitcoin could negatively affect the legal safety of those who trade it and lead to money laundering, he said, “The use of cryptocurrencies impinges on the state’s authority in preserving currency exchange.”
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“Due to its direct responsibility in financial ruin for individuals,” Mufti said that bitcoin could negatively affect the legal safety of those who trade it, and lead to an “ease in money laundering and contrabands trade.”
The fatwa was issued after consultations with several economic experts, Egypt’s Grand Mufti Shawki Allam said on Monday, as cited by Ahram newspaper. Egypt’s legitimate bodies do not consider trading a virtual currency like bitcoin to be acceptable, he said, and the use of cryptocurrencies “impinges on the state’s authority in preserving currency exchange.”
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Allam’s statement came as the value of bitcoin continues to fluctuate unpredictably. As of January 3, its price stands at $15,000.