Bittime - CBDC according to Islamic views, a religious foundation in the future financial landscape. Understanding the relationship between CBDC and an Islamic perspective is certainly very important for Muslims.
Bearing in mind, Muslims have a firm belief in the financial sector with certain principles that must be fulfilled and those that must be avoided.
The following is a review of CBDC from an Islamic perspective, a religious foundation in the future financial landscape.
Understanding what CBDC is
CBDC or Central Bank Digital Currency , which in Indonesian means 'central digital currency', is a digital version of fiat currency issued by the central financial authority of a country.
CBDC is a new innovation that adopts cryptocurrency practices , but has opposite differences.
If cryptocurrency prioritizes decentralization and inclusiveness in its management, then CBDC is on the other side, namely forming the centralization of digital money with full control over the digital currency.
Currently there are two types of CBDC, including:
1. Retail CBDC
Use of CBDC digital currency for daily purposes or transactions
2. CBDC Wholesale
Use of CBDC digital currency by financial institutions for interbank transactions and other large transactions
Check Today's Crypto Market:
CBDC According to Islamic Views
In CBDC according to the Islamic view, the main basis is how CBDC stands in the context of muamalah fiqh.
In the context of muamalah fiqh, CBDC can be accepted as valid and useful if it fulfills four (4) basic functions, namely:
- CBDC can be a store of value instrument
- CBDC can be used as a unit of account
- CBDC can be used as a means of payment or exchange
- CBDC can be used to measure the value of goods or services
If CBDC meets the four principles of validity of muamalah fiqh above, then CBDC can be considered valid as a means of payment according to Islamic views, regardless of its practice which will clearly involve a banking system that is prone to usury.
CBDC as Ma Fid Dzimmah
CBDC according to Islamic views, if relevant, then CBDC can also be called ma fid dzimmah or guaranteed assets.
According to Ibn 'Irfah, quoted by 'Ubaid al-Harawi, in his book entitled Al-Gharibin fil Qur'an wa al-Hadith it is explained that dzimmah has the meaning of dhaman
Translation: "Ibn Irfah said that dzimmah is dhaman , therefore one often hears the saying: 'it is my responsibility'. The meaning of this sentence is 'I am the guarantor'.” (Abu 'Ubaid al-Harawi, Al-Gharibin fil Qur'an wa al-Hadith, Damascus: Darul Fikr, Juz II, p. 683).
In Indonesian, dhaman can be called collateral, collateral or secure compensation .
Also Read How to Buy Crypto:
On the basis of this interpretation, CBDC can be called ma fid dzimmah or guaranteed property because it has useful value as a guarantor.
However, the functionality or usefulness of CBDC still depends on the existence of the assets behind it.
Also Read: 3 Ambitious CBDC Projects from Superior Countries: e-CNY, Digital Euro, and Cedar
Things CBDC Developers Need to Pay Attention to
CBDC in the Islamic view must of course be developed based on the applicable norms of Islamic law.
Therefore, CBDC developers are expected to fulfill this, namely that CBDC must be free from usury (interest).
Check Crypto Prices Today:
To anticipate the application of usury in the practice of using CBDC, the Central Bank can apply the principles of wadi'ah and mudarabah fund collection .
As well as distributing funds by applying the principles of ba'i (buying and selling), jarrah (rental) and syirkah (profit sharing).
Through the implementation of the sharia system, CBDC is expected to be free from the practice of usury (interest).
That is the discussion regarding CBDC according to Islam, a religious foundation in the future financial landscape. Wallahua'lam .
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Wholesale CBDC vs Retail CBDC: Here's What You Need to Know!
Donald Trump Rejects CBDC If Re-Elected
CBDC: Safe and Practical Digital Money of the Future!
What Is a CBDC Narrative? 3 CBCD Narrative Coins, Read the Complete Explanation
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.