Evaluating Cryptocurrency through Maqashid Syariah: A Conceptual Framework in Islamic Digital Finance

Abstract

This study assesses the extent to which cryptocurrency aligns with maqashid al-shariah within the Islamic digital finance ecosystem by weighing public benefits (maslahah) and potential harms (mafsadah). Using a qualitative, library-based research design encompassing literature from 2018–2025 (including Scopus/WoS-indexed journals, fatwas, and policy reports), the analysis employs content analysis, cross-jurisdictional comparison, and thematic synthesis to map crypto attributes—volatility, transparency, custody, stablecoin reserves, and governance—onto the five daruriyyat (ḥifẓ al-dīn, al-nafs, al-‘aql, al-nasl, and al-māl). Findings reveal conditional benefits such as payment efficiency, cross-border remittances, and certain diversification opportunities, yet these remain overshadowed by risks of speculation, fraud, custody failures, and fragile token designs. The synthesis suggests “conditional permissibility” when governance mechanisms mitigate gharar and maysir through high-quality reserves, independent audits, regular disclosures, clear redemption rights, and market supervision (“same risk–same rules”). The theoretical contribution lies in a results-based evaluative framework with measurable indicators, while the practical implication offers guidance for regulators, Sharia supervisory boards, and industry players in product design, consumer protection, and education. Future research agendas include validating maqashid-based indicators, conducting cross-jurisdictional expert surveys, and implementing quasi-experiments on remittance efficiency and household welfare.