Reasons Why PBNU Declares Bitcoin Haram in Indonesia Despite Being a Valid Currency

The Bahtsul Masail Waqiyyah forum of the 35th Nahdlatul Ulama (NU) Muktamar has affirmed that using Bitcoin as a currency in Indonesia is forbidden (haram).

KH Mahbub Maafi, a representative of the 35th NU Muktamar Bahtsul Masail Waqiyyah, explained that this prohibition is closely linked to compliance with existing Indonesian law, specifically Law Number 7 of 2011 concerning Currency. Under this law, the only legal tender in Indonesia is the Rupiah.

“If we want to make Bitcoin a currency, it is possible, but the ruling remains haram because there is a government prohibition stating that our currency is not Bitcoin, but the Rupiah,” Mahbub stated during a press conference at the PBNU Office, Jakarta, on Thursday (3/9).

Nevertheless, Mahbub explained that from the perspective of Islamic jurisprudence (fiqh), Bitcoin meets the requirements to be considered valid as mal (property) and saman (medium of exchange).

“In terms of fiqh, Bitcoin meets the requirements as mal or property and saman or a medium of exchange,” he said.

Mahbub revealed that the Bahtsul Masail forum distinguishes between saman and currency (naqd). He noted that something classified as saman is not necessarily a currency, whereas a currency must function as saman.

Mahbub presented several considerations used in determining Bitcoin as mal and saman. Firstly, Bitcoin is considered to have tangible utility. This utility is permitted under Sharia and is deemed valuable based on social custom (’urf an-nas).

“Furthermore, the factual fluctuation of Bitcoin’s value never reaches zero. This is one of the important points,” Mahbub explained.

Additionally, Bitcoin is considered exchangeable for other goods and transferable from one owner to another. Bitcoin also possesses a private key, which is deemed to protect it from dharar (harm or loss).

Furthermore, Mahbub stated that the Bahtsul Masail also discussed the legality of conducting transactions with Bitcoin. He stated that Bitcoin is a digital asset that is permissible to trade. In fact, using Bitcoin as a currency is also considered valid under Islamic jurisprudence.

“Transacting Bitcoin as a digital asset is valid and permitted. Interestingly, using Bitcoin as a currency is also considered valid [under fiqh principles],” he concluded.