Cryptocurrency in Malaysia: Navigating Islamic legal perspectives for economic innovation and resilience

Mohammad Hidir Baharudin; Rahmawati Mohd Yusoff; Ros Hasri Ahmad; Muhamad Ismail Pahmi; Siti Masnah Saringat; Shafiee Md Tarmudi

doi:10.21834/e-bpj.v10iSI28.6952

Authors

Mohammad Hidir Baharudin Lecturer, Sultan Ibrahim Johor Islamic University College, 80350 Johor Bahru, Johor, Malaysiaohor, Malaysia, 2 Senior Lecturer, Department of Law, Universiti Teknologi MARA, Cawangan Johor, 85000 Segamat, Johor, Malaysia
Rahmawati Mohd Yusoff Senior Lecturer, Department of Law, Universiti Teknologi MARA, Cawangan Johor, 85000 Segamat, Johor, Malaysia
Ros Hasri Ahmad Senior Lecturer, Faculty of Business and Management, Universiti Teknologi Mara (UiTM), Cawangan Johor, Kampus Segamat, 85000 Segamat, Johor, Malaysia
Muhamad Ismail Pahmi Senior Lecturer, College of Computing, Informatics and Mathematics, Universiti Teknologi Mara (UiTM), Cawangan Johor, Kampus Segamat, 85000 Segamat, Johor, Malaysia
Siti Masnah Saringat Senior Lecturer, Faculty of Accountancy, Universiti Teknologi Mara (UiTM), Cawangan Johor, Kampus Segamat, 85000 Segamat, Johor, Malaysia
Shafiee Md Tarmudi Senior Lecturer, Faculty of Business and Management, Universiti Teknologi Mara (UiTM), Cawangan Johor, Kampus Segamat, 85000 Segamat, Johor, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v10iSI28.6952

Keywords:

Cryptocurrency, Islamic Perspective, Economic Sustainability

Abstract

Cryptocurrency has emerged as a revolutionary financial instrument, transforming the global economy with its decentralised and borderless nature. In Malaysia, the compatibility of cryptocurrency with Shariah principles is a subject of intense debate. Through qualitative research methods, this paper explores the role of cryptocurrency within Malaysia’s economic framework, its implications for economic resilience, and the potential for incorporating cryptocurrencies into Malaysia’s Islamic finance sector. The findings suggest that cryptocurrency can boost economic innovation, lower transaction costs, and promote creativity. Malaysia might lead the global fintech sector by introducing bitcoin into Islamic financing, which could improve financial inclusion.

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