HEWLÊR-Erbil, Iraq’s Kurdistan region,— Iraqi Kurdistan Region’s High Council of Fatwa ruled on Wednesday that the use of cryptocurrencies, including Bitcoin and Pi Coin, is haram and prohibited because it does not have official government support and is akin to gambling.
“Most of the time, paper currency is issued by authorized central banks, in contrast to the electronic currency. So there is no legal support,” the High Council of Fatwa said in a statement.
“The price of these currencies rises and falls in a very short period of time and is affected by changes in the bazaar. Due to the lack of a base and institution for valuation, exchange, monitoring and setting of prices, it is close to gambling and it has been forbidden in sharia,” it added.
The Council also said that the seller and the buyer must be in the same place when exchanging currencies and cannot do it through phone calls or over the internet because that is haram. An exception to this is if both parties have accounts with reliable banks.
In the recent years, people in Iraqi Kurdistan have increasingly used cryptocurrencies for transactions. In 2018, the Council made an initial ruling that prohibited the use one specific cryptocurrency.
According to analysts Bitcoin BTC (Bitcoin.org), is the only decentralized, independent, fundamental and ideological digital coin. It has been considered as a digital cash and the only true store of value that is not owned by a company or under any government control.
All other cryptocurrencies are created and owned by private companies and mostly considered as no-value coins and can go to zero at anytime just by closing the company.
Also some other companies have created a modified copy of Bitcoin BTC and pretending to be Bitcoin like B-cash (Bitcoin.com) which is not Bitcoin at all, analysts say.
The Bitcoin BTC Standard: Considered as the decentralized alternative to Central Banking.
On June 25, 2020, 1 Bitcoin BTC has the value of $9,300 USD and it is expected to reach $30,000-$50,000 in the near future, according to stock exchange experts.