Classification and Techno-Economic Analysis of Different Types of Cryptocurrencies from the Perspective of the Macro Framework of the Monetary System in Islamic Economy

Abstract

In recent years, with the definition and expansion of a new phenomenon called cryptocurrencies, we have witnessed scientific discussions and challenges in the field of accurate thematics of this phenomenon and the jurisprudential and religious implications of their transactions under Islamic economy. Although the phenomenon began with the introduction of Bitcoin in 2008, in the last decade with the expansion of technologies and consensus protocols, there has been a significant growth in this with the consequence of more than seventeen thousand (17,000) cryptocurrencies of different natures being formally listed. Since one of the important issues in Shari'a and Islamic ruling is the complete knowledge of the subject and its varieties, in this research, an attempt has been made to provide an accurate thematics of these seventeen thousand codes and then according to the principles, rules and criteria about money in the general framework of the Islamic monetary system, different types of cryptocurrencies should be analyzed and examined. The results show that, firstly, from a technical point of view, according to the protocols of consensus and support, cryptocurrencies can be divided into two general categories: stable and unstable. Secondly, from an economic point of view, some cryptocurrencies are monetary in nature and others are asset in nature. Thirdly, among the types of cryptocurrencies, those that are designed to be stable and backed by assets or goods, are more closely related to and observe better the principles and rules of the Islamic monetary system.

Keywords

• crypto values
• coin stable
• monetary system framework
• consensus protocol
• proof of work