Fiat Money Is “Riba,” Which Islam Forbids

This chapter describes another fundamental criticism of the Western economic system – that from Islamic economics. This is included not because the authors are advocating for Islamic economics, but because Islamic economists generally have a clearer understanding of the fundamental dishonesty of the Western monetary system than mainstream Western economists, who almost entirely ignore this glaring flaw at the heart of the Western economic system. Having forbidden interest-bearing loans, like Islam, for its first 1600 years, Christianity relaxed its rules, and thereby lowered its guard against the “money power,” which is now running rampant in what was once “Christendom.” Recent collaboration between Islamic economists and “dissident” Western economists is very promising.

A STUDY OF LITERATURE: CRYPTOCURRENCY OF SYARIAH PERSPECTIVE

Cryptocurrency is a digital or virtual currency, which does not have a physical form like fiat money. This crypto currency can only be used through devices such as PCs, laptops, smartphones and other devices that are connected to the internet. There are several advantages in a crypto system that uses blockchain system, such as transaction security, convenience, speed and can be used across countries and continents, however cryptocurrency which is currently circulating also still have weaknesses, including there is no supervisory authority, even many countries have disagreements over the legality of this cryptocurrency. The debate about the pros and cons regarding to the use of cryptocurrency becomes dynamics among the experts including the scholars who have study from Islamic point of view. This research aims to examine the dynamics of using cryptocurrency from ushul fiqh point of view, where the methods which used in this research are al-qur'an, al-Hadith, Qiyas and Sad-Adzariyah. Basically the use of cryptocurrency is allowed to meet cetain conditions that is by removing batil elements as in Quran surah An-Nisa verse 29, those batil elements are gharar and mayshir. Moreover, cryptocurrency must also have clear legality in a country for security in their use.

Old frauds with a new sauce: digital assets and space transition

Purpose The purpose of this study is to describe the evolution of fraud schemes with historically conducted with fiat money in physical space to the crypto-assets in digital space as follows: ransomware, price manipulation, pump and dump schemes, misrepresentation, spoofing and Ponzi Schemes. To explain how fraud schemes have evolved alongside digital asset markets, this study applies the space transition theory. Design/methodology/approach The methodology used is a review of the media regarding six digital asset fraud schemes that have evolved from physical space to virtual space that are currently operational, as well as a review of the literature regarding the space transition theory. Findings This paper finds that the digital space and digital assets may facilitate pseudonymous criminal behavior in the present regulatory environment. Research limitations/implications The field is rapidly evolving, however this study finds that the conversion from physical to virtual space obfuscates the criminal activity, facilitating anonymity of the perpetrators, and creating new challenges for the legal and regulatory environment. Practical implications This paper finds that the digital space and digital assets may facilitate pseudonymous criminal behavior in the present regulatory environment. An understanding of the six crypto-asset fraud schemes described in the paper is useful for anti-financial crime professionals and regulators focusing on deterrence. Social implications The space transition theory offers an explanation for why digital space leads criminals to be better positioned to conduct financial crime in virtual space relative to physical space. This offers insights into behavior of digital asset fraudster behavior that could help limit the social damage caused by crypto-asset fraud. Originality/value To the authors’ knowledge, this paper is the first to detail the evolution of fraud schemes with fiat money in physical space to their corresponding schemes with digital assets in physical space. This study is also the first to integrate the space transition theory into an analysis of digital asset fraud schemes.

Could Virtual Currencies Replace Classic Money and Influence the Activities Of Banks?

This article analyses the concept of virtual currencies by examining the origin and evolution of money in its’ classical form, identifies why classic money needs to evolve and why virtual currencies could represent the next step in their evolution (Vlasov, 2017). With the emergence of Bitcoin, terms as ‘blockchain technology’ and ‘virtual currencies’ have gained great notoriety. One of the reasons virtual currencies became so popular is that people believe that they could be very promising and could be capable to replace money in their traditional form. This being considered, the article tries to achieve the following objectives: to provide an overview on the evolution of money; make a comparison between virtual currencies and classic money; analyse the potential of virtual currency to replace fiat money (Jumde & Cho, 2020). The focus of this article was to gain a holistic insight into the new technology and its power to revolutionise the financial system. The study was performed by comparing various sources and examining existing studies, official reports issued by the EU institutions, opinions of various experts and financial journals articles, in order to create knowledge on the topic, as well as the author’s interpretation of the research material.

Interoperable Permissioned-Blockchain with Sustainable Performance

Bitcoin is an innovative and path-breaking technology that has influenced numerous industries across the globe. It is a form of digital currency (cryptocurrency) that can be used for trading and has the potential to replace fiat money, where the underlying infrastructure is called Blockchain. The Blockchain is an open ledger that provides decentralization, transparency, immutability, and confidentiality. Blockchain can be used in enormous applications, such as healthcare, logistics, supply chain management, the IoT, and so forth. Most of the industrial applications rely on the permissioned blockchain. However, the permissioned blockchain fails in some aspects, such as interoperability among different platforms. This paper suggests a sustainable system to solve the interoperability issue of the permissioned blockchain by designing a new infrastructure. This work has been tested in ethereum and hyperledger frameworks, which obtained a success rate of 100 percent.

Digital Yuan – currency or policy tool?

Central bank digital currencies (CBDCs) are Bitcoin-inspired currencies that combine aspects of virtual currencies with FIAT money. Many central banks and countries around the world are thinking about or planning to introduce some form of CBDC. Among them, China is leading the way, being the first country to issue their CBDC (Digital RMB) into circulation, even if it is yet a pilot program only. This article focuses not only on the Digital RMB and its legal implementation but also on the political, historical, and economic circumstances of its birth, which, when talking about anything related to China, is often crucial to understanding the phenomenon more than the legal provisions themselves. The aim is to deepen the understanding of legal policies in China and open a discussion about the Digital RMB.

How the European Central Bank and Other Independent Agencies Reveal a Gap in Constitutionalism: A Spectrum of Institutions for Commitment

Today’s central banks wield extraordinary powers, both monetary and regulatory, and with a capacity to substitute for elected governments tempted to pass the buck. Debates about central banking’s powers and legitimacy barely touch, however, on whether and how monetary independence fits with the values that drive constitutionalism. It turns out that, for modern economies using fiat money, independence is a corollary of the higher level separation of (fiscal) powers between the legislative and executive branches. Even though independence is necessary, it needs to be carefully constrained by a “money-credit constitution.” Those general arguments, applicable in liberal democracies, do not carry across cleanly to the euro area. A principled case can be made for the ECB’s mandate being specially tight, but that is in tension with its de facto role as the emergency economic actor for the euro area. Facing up to that will be necessary sooner or later.

Fiat Money Inconsistency and the Return of Dinar-Dirham as a Medium of Exchange in the Community

Coronavirus ior ireferred ito ias icovid-19 ihas icaused ivarious ikinds iof inegative ieffects, iespecially iin ithe ieconomic ifield. iThe isoaring iunemployment irate, ithe icontraction iin ithe ivalue iof ithe irupiah iand iother icurrencies ihas iresulted iin ian iincreasingly isluggish ieconomic imovement iin irecent itimes iuntil ithe ipanic iof ithe ivalue iof igold icontinues ito irise iin irecent imonths. iThe iqualitative imethod iis iused iby iscientifically idescribing ithe iimpact iof ithe iCovid i19 ivirus icase ion ithe imovement iof icurrency iand igold ivalues. iThe iresults iof ithis istudy iindicate ithat ithe iCovid i19 ivirus ihas ia iquite inegative iimpact ion ithe ieconomic isector, iespecially ion icurrency iand igold ivalue imovements. iThe imovement iin ithe ivalue iof ithe irupiah icontracted ito itouch iRp.14,000 iwhile ithe ivalue iof igold itended ito irise isignificantly. iThe irising igold ivalue ishows ia ipositive itrend itowards ithe ipossible iimplementation iof ithe ilegal iuse iof ithe idinar iand idirham icurrency iin ithe icommunity. iGold iis ino ilonger iseen ias ia iSave iHaven, ibut iits irole ias ian iextension iof imuamalah iactivities i(buying iand iselling) iin ithe icommunity iis iincreasingly ivisible. iThere iis ipanic iand ipsychologically idisturbing ieconomic iand icommunity iactors iin iresponding ito ithis iincident.iCoronavirus ior ireferred ito ias icovid-19 ihas icaused ivarious ikinds iof inegative ieffects, iespecially iin ithe ieconomic ifield. iThe isoaring iunemployment irate, ithe icontraction iin ithe ivalue iof ithe irupiah iand iother icurrencies ihas iresulted iin ian iincreasingly isluggish ieconomic imovement iin irecent itimes iuntil ithe ipanic iof ithe ivalue iof igold icontinues ito irise iin irecent imonths. iThe iqualitative imethod iis iused iby iscientifically idescribing ithe iimpact iof ithe iCovid i19 ivirus icase ion ithe imovement iof icurrency iand igold ivalues. iThe iresults iof ithis istudy iindicate ithat ithe iCovid i19 ivirus ihas ia iquite inegative iimpact ion ithe ieconomic isector, iespecially ion icurrency iand igold ivalue imovements. iThe imovement iin ithe ivalue iof ithe irupiah icontracted ito itouch iRp.14,000 iwhile ithe ivalue iof igold