Usury in the Earn program: Is it halal or haram?
Have you ever wondered about the ruling of the Earn program on Binance from a religious perspective? Is it halal or haram? In this article, we will discuss this topic in detail.
What is the Earn program?
The Earn program is a program that allows users to earn rewards by investing in digital assets. You can invest money in cryptocurrencies and earn interest on your investments.
Usury in the Earn program
Usury is an increase on capital in financial transactions without a real counterpart. In the Earn program, users earn interest on their investments. The question is: Is this interest considered usury?
Where do savings (investment) interests come from?
Have you asked yourself where the savings (investment) interest that Binance gives you comes from? The interest you receive from your savings (investment) comes from other people who are lent the money you saved with them, and then it collects the interest from those loans and gives you a percentage of it.
. This is forbidden as you are among those promised war from Allah directly, and may Allah protect us. Allah, the Exalted, says:
O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers.
(278) And if you do not do [as instructed], then be informed of a war from Allah and His Messenger. And if you repent, you will have your principal. You do not wrong, nor are you wronged.
From Surah Al-Baqarah - Ayah (279)
_ Those who consume usury will not stand on the Day of Resurrection except as one stands who has been beaten by Satan into insanity. That is because they say, 'Trade is just like usury.' But Allah has permitted trade and has forbidden usury. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. And whoever returns [to dealing in usury or consuming it or taking it] - those are the companions of the Fire; they will abide therein eternally.
From Surah Al-Baqarah - Ayah (275)
Scholarly opinions
There are different opinions on this subject. Some scholars believe that the Earn program is considered usury because users receive interest without a real counterpart. Meanwhile, others argue that the Earn program is not usury if the interest received by users results from a real investment in digital assets.
Summary
In conclusion, we can say that the Earn program is considered usury because the interest received by users is the interest on loans from other people after they lend your money, and the interest is divided between you and Binance, which contradicts Islamic principles that prohibit usury. We recommend thorough research and consultation with scholars and jurists before making any decision.
