Roundtable Discussion on Cryptocurrency: Issues and Solutions

On 16th April 2018, a roundtable discussion on cryptocurrency has been organized by International Research Centre of Islamic Economics and Finance (IRCIEF), KUIS in collaboration with Faculty of Science and Information Technology (FSTM), KUIS, International Shari’ah Research Academy for Islamic Finance (ISRA) and Movement for Monetary Justice of Malaysia (MMJ). The programme took place at International Islamic University College of Selangor (KUIS) from 9 a.m. until 4:30 p.m.

The roundtable discussion has been led by Prof Dr Ashraf Md Hashim, Chief Executive Officer of ISRA Consultancy as the moderator. Among the roundtable discussion panellists are the academicians from universities, non-government organization, representatives from mufti offices and information technology experts. There are varieties of issue that have been arisen throughout the session such as the usage status of cryptocurrency from Shariah perspective and security issues in using cryptocurrency.

In the midst of programme, a Memorandum of Cooperation has been signed between KUIS and ISRA. KUIS has been represented by Dr Mohamad Syukri Abdul Rahman, Deputy Rector of Student and Alumni Development while ISRA has been represented by Prof Dr Ashraf Md Hashim.

At the end of the roundtable discussion, the moderator has summarized if cryptocurrency is backed by commodity or issued by government, the issues that arise are expected to be less, however it is also depends on how well it is implemented and it is essential to get verification of subject matter expert. Other than that, the value of cryptocurrency among its users is based on their trust in the technology used. In addition, cryptocurrency with strong technology will survive while cryptocurrency with weak technology will not last. Cryptocurrency is not a stand-alone currency. As of now, it is still based on fiat money. In the context of Shariah, the use of cryptocurrency as medium of settlement and remittance may fall under the general concept of the following; All things are originally permissible (الأَصْلُ فِي الأَشْيَاءِ الإِبَاحَة) and the willingness of the sides in implementing the contract.

In overall, this programme has given an exposure for the attendees in knowing the cryptocurrency issues which are still new in this country from various perspectives.

Some photos of the roundtable discussion.

Muhammad Azwan bin Mohd Azman, 18 April 2018, International Research Centre of Islamic Economics and Finance (IRCIEF)

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