Bitcoin declared Halal by Islamic Scholar

Indonesian scholar says it's permissible under Sharia Law
Bitcoin and other crypto-currencies made a lot of noise last year, however, there has been debate on whether trading of crypto-currencies is permissible according to Islamic laws.

What is Bitcoin?

According to The Independent, a new study by Muhammad Abu-Bakar, an Indonesian scholar explored this topic and came to the conclusion that it was permissible under Sharia Law.

Amongst other findings, Mr. Abu-Bakar came to this conclusion based on the fact that Germany recognizes bitcoin as legal currency.

“Bitcoin is permissible in principal as bitcoin is treated as valuable by market price on global exchanges and it is accepted for payment at a wide variety of merchants...Moreover, many private individuals accept bitcoin as a medium of exchange in their private transactions.”

The price of bitcoin jumped by $1000 last week and some analysts speculated that this law could have contributed to the spike.