Amanie Advisors has collaborated with Ethereum Foundation to conduct a research on Ether as a cryptocurrency and the Ethereum platform in the attempt to provide Shariah views and opinions on these topics.
The main objective of the paper is to outline the Shariah parameters of Ether, the cryptocurrency of Ethereum platform based on the extensive research on the subject from the perspective of Shariah and Islamic finance industry. As with other cryptocurrencies, there are uncertainties especially from the Islamic community whether it is permissible for them to get involved in the space either in the mining or trading aspect of Ether or in the development of smart contract and decentralized applications.
The hypothesis prior to the research was that if Ether as the native cryptocurrency of the platform is deemed permissible or in a more friendly terminology in the Islamic finance community – “Shariah-compliant”, then the public shall be more confident and assured to be more active in participating in the development of Shariah compliant smart contracts and decentralized applications which is now still lagging behind. It is hoped that with the findings, parameters and guideline outlined in this paper, it would serve as a catalyst to the Islamic finance market, and wider Muslim population to enter and participate in the space as well.
The paper has been presented to and discussed with the Amanie Shariah Supervisory Board. The Scholars have endorsed the whitepaper which can now be downloaded below:-