Is Bitcoin (BTC) Halal or Haram?
Shariah compliance review of Bitcoin (BTC) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
The projects and use cases provided by Bitcoin appear to be in accordance with Shariah principles. Source: sharlife.my
Staking verdict: Questionable
There is no Proof of Stake consensus, the chain functions on Proof of Work protocol, which is "mining". This is why any so called "staking" or other instrument with a fixed yield for this cryptocurrency is at least questionable, because it lacks participating in creating new blockchain transactions in the blockchain. You can read more about Proof-of-Stake protocol on our Blogs section below this crypto list. However, we are not talking about other pledge or liquidity instruments that involves BTC. It will have a separate ruling. Today, new protocols like Babylon are being developed, enabling users to participate in the Proof-of-Stake consensus protocol for various blockchains by locking their BTC on the original chain. This version of staking for BTC has significant potential to be legitimate.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.