Cryptography is prohibited, according to Indonesia's national religious council

[ASEAN NOW Content Team]

 

The National Ulema Council of Indonesia has declared cryptocurrency haram, or forbidden.

According to Indonesia's council of religious authorities, Muslims are prohibited from using crypto assets as a form of cash.

The National Ulema Council, or MUI, has declared cryptocurrency haram, or forbidden, since it has aspects of uncertainty, wagering, and injury, according to Asrorun Niam Sholeh, head of religious decrees.
He stated that cryptocurrencies as a commodity or digital asset can be exchanged if it adheres to Shariah teachings and provides a demonstrable advantage.

 

MUI is the Shariah compliance authority of the world's most populous Muslim country, with the finance ministry and central bank advising them on Islamic finance matters.

The government has backed crypto assets, allowing them to be traded alongside commodities futures as an investment alternative and pushing for the establishment of a crypto-focused exchange by the end of the year.
The usage of crypto assets as a form of currency is not permitted in Indonesia, as the rupiah is the country's only legal tender.

 

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While the MUI ruling does not rule out the possibility of all cryptocurrency trading in Indonesia, it may discourage Muslims from investing in the assets and cause local institutions to reconsider issuing crypto assets.
Bank Indonesia has been considering a central bank digital currency but has yet to make a decision.

 

In Indonesia, cryptocurrency transactions totaled 370 trillion rupiah ($26 billion) in the first five months of the year, a small part of the $3 trillion global market.