MAQAṢID AL-SHARI'AH IN THE ERA OF DIGITALIZATION: EXAMINING CRYPTOCURRENCY IN THE FRAMEWORK OF HIFẒ AL-MĀL AS A MEANS OF FINANCIAL SUSTAINABILITY

Abstract

This study investigates the extent to which cryptocurrency particularly Bitcoin supports or contradicts the principle of ḥifẓ al-māl within the framework of maqāṣid al-Sharīʿah in the era of digitalization. The core concern lies in Bitcoin’s extreme volatility and its embedded elements of gharar (uncertainty) and maysir (speculation), which may cause material loss and undermine national financial integrity. Previous frameworks have proposed Sharīʿah compliant cryptocurrencies backed by real assets, smart contracts for automated zakat, and oversight from regulators and Sharīʿah boards. Yet, such implementations remain constrained, as Bitcoin's inherent design lacks consistent stability and Islamic legal compliance. As an innovative step, this research introduces model of Islamic cryptocurrency focused on national financial sustainability. The model integrates Bitcoin with supporting tools, including real asset-backed stablecoins, automated zakat and waqf mechanisms, and hybrid regulation involving both governmental authorities and Sharīʿah councils. This design aims mitigate speculative risks and reinforce financial justice. The study also examines stakeholders’ perceptions of Bitcoin from maqāṣid perspective and formulates ideal characteristics for Islamic cryptocurrency that upholds ḥifẓ al-māl. Using a qualitative exploratory method, the research involves interviews with Islamic scholars, active crypto users, supported by analysis of MUI fatwas and contemporary Sharīʿah texts. Findings show that while blockchain technology provides strong transparency and accountability, conventional Bitcoin still falls short of Sharīʿah compliance due to its speculative nature. The proposed model presents stronger prospects for balancing benefits and risks, framing Bitcoin as a viable Islamic financial instrument when designed with a maqāṣid-oriented paradigm emphasizing wealth protection, equity, and transparency.