Cryptocurrency and the Prohibition of Riba (Usury)

In this lesson, we focus on the diverse landscape of cryptocurrencies, each with its unique attributes and potential for transforming digital transactions. Bitcoin is our starting point, the pioneering currency introduced by the enigmatic Satoshi Nakamoto in 2008. It set the precedent for decentralized digital cash, operating on a transparent and immutable ledger known as the blockchain. Moving beyond Bitcoin, we have altcoins, which include any cryptocurrency other than Bitcoin. Many of these are built on Bitcoin's open-source protocol with significant modifications, while others originate from entirely new frameworks. Among them is Islamic Coin, which is designed to align with Shariah principles, highlighting the adaptability of cryptocurrencies to cultural and ethical considerations. Ethereum earns a special mention for introducing smart contracts to the blockchain, expanding the technology's use beyond simple transactions to more complex, programmable operations. Stablecoins present a different angle, aiming to offer a digitized currency with stable value, tied to existing assets like gold or fiat currencies, to counteract the volatility typically associated with cryptocurrencies. We also examine Central Bank Digital Currencies (CBDCs), a hybrid concept where central banks create their own digital versions of money. With CBDCs like China's digital yuan, we encounter the blend of crypto efficiency with traditional currency stability, but not without raising debates about privacy and control.