Cryptocurrency: Property or Money? A Jurisprudential and Legal Analysis

Cryptocurrencies are a novel product of human thought and creativity. This innovative creation, in addition to offering new perspectives and vast potential for transforming human life, has also posed significant challenges across all areas of human society. In its precise sense, cryptocurrency is a decentralized and distributed phenomenon. Decentralization means that no specific government, institution, or individual has control or oversight over it. Distribution implies that the processes of creation and exchange are collective, carried out by users around the globe. This means that information related to this phenomenon is held by a vast number of individuals, and no single person or group can gather all this information in one place to disrupt its processes. From a legal and jurisprudential perspective, cryptocurrencies are considered "property", as they possess rational utility, are customarily used in transactions, and there is no legal or jurisprudential prohibition against them being regarded as property. However, cryptocurrencies cannot be classified as "money." Although cryptocurrencies can function in a monetary capacity, the most essential feature of money is its recognition and formal approval by the legislature. In essence, money is a status conferred upon an object by law. Since governments lack control and supervision over this phenomenon, they refrain from legally recognizing it, as the exclusive authority to issue money is a key component of a political system’s sovereignty.

کلیدواژه ها:

Cryptocurrency ، Digital Currency ، Law ، Islamic Jurisprudence (Fiqh)