The Informal Digital Currencies (An Islamic Economics evaluation)
Keywords:
Digital currencies, Informal digital currencies, Virtual currencies, Crypto-currencies.Abstract
The study aimed to discuss the properties of digital currencies in wide concept, as theoretical entry to define terms of virtual currencies, Crypto-currencies, Stable coins, and Central Bank digital Currencies. Although the study casting light on informal digital currencies, in order to display the Islamic economics consideration. The study included most of prominent economic risks of informal digital currencies, as money and monetary policy risk, in addition to banking and financial stability risks. Also, the study offered the informal digital currencies in Islamic economics point view, where it explained the violations of informal digital currencies from the perspective of Islamic economics, and the appropriate Shari‘ah alternative to those digital currencies was explained from the position of the Islamic economic doctrine. The study concluded that informal digital currencies are just virtual assets, such as numbers and data on the screen of internet platforms, and this characterization eliminate their monetary and commodity feature, and also to not being real financial assets. Moreover, the study found the risks of informal digital currencies having an impact on the macroeconomic, In terms of money and monetary policy, financial and banking stability, and in several aspects informal digital currencies couldn’t be an Islamic economic complaint, so central banks digital currencies will be the appropriate alternative of informal digital currencies.
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