Kurdish Islamic scholar Qaradaghi says cryptocurrencies are haram

Kurdish Islamic scholar Qaradaghi says cryptocurrencies are forbidden — Iraqi Kurdish Muslim scholar and the head of the International Union of Muslim Scholars, Dr. Ali Qaradaghi, May 1, 2025. Photo: Screengrab/K24 TV

Qaradaghi says Bitcoin is “haram”

SULAIMANI,— Kurdish Muslim scholar and the head of the International Union of Muslim Scholars, Dr. Ali Qaradaghi, has declared the use of digital currencies such as Bitcoin BTC to be both religiously impermissible and economically dangerous.

Speaking in a recent interview on K24 TV, Qaradaghi, who seems to have absolutely no idea about the economy, digital currencies, and the new Bitcoin standard, said he classified currencies into three categories: paper money, electronic payments, and digital assets.

He affirmed that paper currencies like the Iraqi dinar and U.S. dollar are fully acceptable under Islamic law.

Similarly, he stated that electronic formats, including debit and credit cards such as Visa, are considered legitimate and operate within standard financial norms.

However, Qaradaghi took a firm stance against cryptocurrencies, describing them as unstable, speculative, and lacking intrinsic value.

He emphasized that these assets, like Bitcoin or altcoin, are not backed by physical commodities or recognized by Islamic jurisprudence, and are often traded purely for profit without tangible benefit to society.

“These currencies serve no real economic purpose,” he said. “They are not owned in the traditional sense, and their value can vanish without warning. This makes them both forbidden and extremely risky.”

Qaradaghi pointed to cases in Turkey and other nations where online platforms raised large amounts—reportedly totaling $82 billion—before disappearing without explanation. He suggested that such incidents highlight the dangers of dealing in unregulated digital assets.

According to Qaradaghi, while a small number of blockchain-based services may be considered halal under specific conditions, the overwhelming majority of digital coins fall into the category of haram due to their speculative nature.

“Most of these platforms enrich the already wealthy. They do not contribute to the welfare of the poor. Not even a loaf of bread has been distributed from these gains,” he stated.

Meanwhile, top world analysts argue that Bitcoin stands apart from other digital currencies. Unlike altcoins, Bitcoin is decentralized, operates independently from governments or corporations, and has a capped supply of 21 million units. Its supporters often refer to it as “digital gold” and claim it represents a secure, unconfiscatable true store of value.

In March 2025, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, utilizing digital holdings already in government control.

Henase Karim, a political and economic analyst, told iKurd.net that Bitcoin was developed as a response to global monetary inflation and the centralization of financial power.

“People no longer trust traditional banks or governments,” Karim said. “Bitcoin is controlled by no one. It’s designed by and for ordinary people.”

She added that as fiat currencies lose value due to excessive printing, more countries are beginning to recognize Bitcoin’s long-term potential.

“Governments worldwide are now legalizing Bitcoin. But in parts of the Middle East, the more you enforce religious interpretations, the more you fall behind scientifically and economically,” she concluded.

Bitcoin reached a record $109,071 in January 2025.

In January 2024, Ali Qaradaghi was elected chairman of the International Union of Muslim Scholars (IUMS), succeeding the late Yusuf al-Qaradawi, a controversial figure known for his hardline views.

Discover The Bitcoin Standard: The Decentralized Alternative to Central Banking, a hardcover edition featuring illustrations, authored by Saifedean Ammous and published on April 24, 2018.