Islamic scholar Irshad Ahmad Ijaz asserted that digital currency is not a counterfeit currency and that it should be legalized once certain conditions are met. Ijaz's view was echoed by other scholars who participated in a seminar examining the status of digital currencies from the perspective of Islamic law.

Using Cryptocurrency in the Digital Age

Islamic scholar or mufti Irshad Ahmad Ijaz recently argued that digital currencies are not so-called virtual currencies, according to a report. However, he suggests that such currencies can only be justified if certain conditions are met.

According to a report published by Academia, Ijaz also urged the Pakistani government to play a role in ensuring that the confusion surrounding the use of cryptocurrencies is eliminated when he spoke at a workshop on cryptocurrencies in Pakistan organized by Karachi University and the Al-Asr Foundation.

At the same time, the report quotes another scholar, Ishaq Alam, who suggests that Islamic scholars need to understand that the world is entering the digital age and that new problems requiring new solutions will emerge. According to Alam, understanding this enables scholars to issue appropriate guidance to users of digital currencies.

Bitcoin's success

Echoing similar views is cryptocurrency expert Mufti Owais Paracha, who acknowledges in his report how past attempts to create digital currencies have failed and how Satoshi Nakamoto's creation ultimately succeeded. According to Paracha, Bitcoin succeeds because it combines cryptocurrency cryptography with the so-called technology used in previous currencies.

Elsewhere in the report, scholars also highlight the need for more research on the subject of digital currencies. In turn, this will ostensibly enable scholars to provide advice that will guide users or holders of digital currencies in the country.

These views, expressed primarily by Pakistani academics, come shortly after the country's central bank governor, Reza Baqir, warned in a speech that the potential risks associated with cryptocurrencies outweighed the benefits. Baqir also said that these assets pose a risk to financial stability.

However, despite the governor's comments, Bitcoin.com News reported in late December 2021 that Pakistanis have over $20 billion worth of cryptocurrency assets.

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