New Delhi: As the demand and acceptance for cryptocurrency rise globally, there’s one country that has banned crypto for its majority population. Yes, you read that right. According to Indonesia’s council of religious leaders, the use of crypto assets as a currency is forbidden for Muslims, reported news agency Bloomberg.
The National Ulema Council, or MUI, has deemed cryptocurrency as haram, or banned, as it has elements of uncertainty, wagering and harm, Asrorun Niam Sholeh, head of religious decrees, was quoted as saying on Thursday. He made the remarks after the council held an expert hearing on the issue. If cryptocurrency as a commodity or digital asset can abide by Shariah tenets and can show a clear benefit, then it can be traded, he added.
MUI holds the authority on Shariah compliance in the country that’s home to the world’s largest Muslim population. Even the Indonesian finance ministry and central bank consult them on Islamic finance issues. While the decision from MUI doesn’t mean all cryptocurrency trading will be stopped in Indonesia, the order could deter Muslims from investing in the assets and make local institutions reconsider issuing crypto assets. Bank Indonesia has been mulling a central bank digital currency, with no decision announced as yet, the Bloomberg report added.