When we talk about crypto and Islam, the discussion usually hits a wall with one question.
"Halal or haram?"
But after reading Muhammadiyah's perspective on crypto, I actually feel that a more important question is: "What is crypto used for?"
It turns out the answer isn't as straightforward as black or white.
In Muhammadiyah's analysis, crypto isn't automatically deemed haram in all conditions. It's not just about the asset's name, but the function, usage, risks, and how the transactions are executed.
Personally, I find this approach to be more realistic. Because if you think about it, Bitcoin, Ethereum, Bnb, or other crypto assets are indeed different from money, gold, stocks, and traditional commodities. Crypto is a digital asset born from new technology and has characteristics that have never existed before.
That's why Muhammadiyah uses the tarjih approach. Simply put, tarjih is the process of selecting the opinion considered the strongest after considering evidence, benefits, risks, and the current conditions faced by society. So it's not just about finding the easiest or most popular answer.
Interestingly, Muhammadiyah differentiates crypto as an asset and crypto as a payment tool.
As a digital asset, crypto like Bitcoin or Ethereum can be viewed as mubah or permissible as long as its transactions do not contain elements of maisir, gharar, and riba. This means a person can buy, hold, or invest in crypto as long as it's done reasonably and with an understanding of the risks.
However, when crypto is used as a payment tool, the situation is different. In Indonesia, the legal payment method is rupiah. Therefore, using crypto to purchase goods or services is considered not in line with the applicable regulations.
Initially, I was also puzzled. If it can be owned as an asset, why can't it be used for payments?
Upon further reflection, the logic is actually similar to gold. We can own gold as an investment asset, but that doesn't mean we can freely use gold to buy coffee at a stall or pay electricity bills. The functions of assets and payment tools are indeed different.
Another important discussion, in my opinion, is about how to invest. Many people think all crypto activities are the same, but in reality, they are not.
Buying Bitcoin gradually for long-term investment is certainly different from using 100x leverage, high-risk futures, or chasing meme coins just because you're afraid of missing out on trends. From a sharia perspective, excessive speculation, gambling, manipulation, and ambiguity are factors to avoid.
I'm also interested in the discussion about zakat. In the past, many thought of crypto as merely a technology or speculative instrument. However, if crypto is recognized as an asset that has economic value, then logically, this asset could also be included in the zakat discussion once it meets certain criteria.
For me, the essence of this whole discussion is not about seeking justification to buy crypto or reasons to reject it. What’s most interesting is how Islam tries to understand new technology with a deeper approach.
Because in the end, the biggest issue in investing is not just choosing the right asset, but how we use it.
And maybe that's why the question "halal or haram?" is sometimes too simple to explain something as complex as crypto.
What do you all think, is the approach that looks at the function and use of assets more relevant than just labeling them halal or haram outright?