Document Type : Science - Research (Islamic Finance Jurisprudence)
Authors
1 Assistant Professor, Department of Jurisprudence and Private Law, Shahid Motahari University, Tehran, Iran.
2 PhD, Jurisprudence and Fundamentals of Islamic Law, Imam Khomeini Research Institute and Islamic Revolution, Tehran, Iran
Abstract
1. Introduction
In Islamic jurisprudence, the exchange of money for money is referred to as Bay‘ al-Ṣarf, a transaction that carries unique legal stipulations. Classical juristic sources frequently mention three conditions for its validity: (1) equality in amount when the exchanged items are of the same kind, (2) spot payment (ḥulūl), and (3) hand-to-hand exchange within the same session (taqābuḍ fī al-majlis). The historical context of these rulings is tied to Naqdayn—gold and silver—the standard currencies during the early Islamic era. This study addresses a critical question: Are these rulings exclusive to gold and silver, or do they extend to the currencies of any period, including modern forms of money such as cryptocurrencies? The inquiry gains significance with the rapid emergence of cryptocurrencies as potential monetary instruments in contemporary markets.
2. Objective
The primary objective is to examine whether the specific rules of Bay‘ al-Ṣarf—particularly the condition of taqābuḍ fī al-majlis—apply to cryptocurrencies, contingent upon establishing their monetary status. The research seeks to clarify whether these conditions should be observed in digital transactions, given the non-physical nature of cryptocurrencies and the unique technological framework of blockchain-based exchanges.
3. Methods and Materials
This study adopts a descriptive–analytical approach, reviewing classical Islamic legal sources, contemporary juristic opinions, and the functional characteristics of cryptocurrencies. Data were collected from primary fiqh references, modern scholarly analyses, and technical descriptions of blockchain operations. The interpretive framework focuses on aligning historical legal constructs with contemporary monetary innovations, while considering jurisprudential reasoning (istinbāṭ) and precautionary principles (iḥtiyāṭ).
4. Research Findings
The analysis reveals two key findings:
First, contrary to the majority view among jurists, only the third condition (taqābuḍ fī al-majlis) is exclusive to Bay‘ al-Ṣ The first two—equality in amount for the same kind and spot payment—are general anti-riba safeguards applicable to all forms of sale, not just currency exchanges.
Second, based on textual evidence and precautionary reasoning, the requirement of taqābuḍ fī al-majlis is not confined to gold and silver. This condition could logically extend to all monetary instruments, including modern fiat currencies and cryptocurrencies, provided their function as money is verified.
5. Discussion
The extension of Bay‘ al-Ṣarf rules to cryptocurrencies hinges on recognizing them as legitimate money under Islamic law. Blockchain transactions involve digital transfer of ownership, confirmed upon network validation. This process may fulfill the taqābuḍ requirement if the exchange is completed before contractual separation (before tafarruq). However, challenges remain in defining “session” in virtual transactions, ensuring mutual consent, and preventing undue delay in transfer confirmations. These conceptual adjustments are necessary to reconcile classical jurisprudential frameworks with the realities of digital finance.
6. Conclusion
The study concludes that the taqābuḍ fī al-majlis condition in Bay‘ al-Ṣarf should not be restricted to gold and silver but applies to any recognized form of money, including cryptocurrencies, assuming their monetary nature is substantiated. The hand-to-hand requirement, in the context of blockchain, translates to the successful transfer and confirmation of cryptocurrency ownership within the same contractual engagement. This finding underscores the adaptability of Islamic commercial law to technological advancements, while maintaining core principles aimed at fairness and prevention of exploitation in monetary exchanges.
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