As a payment network YES, Bitcoin is halal. In fact, Bitcoin goes beyond what more conventional closed banking networks offer. Unlike conventional bank networks which use private ledgers where there's no guarantee that the originator actually owns the underlying assets, Bitcoin guarantees with mathematical certainty that the originator of the transfer owns the underlying assets. Conventional banks operate using the principle of fractional reserve, which is prohibited in Islam.
As far as I know Egypts top imam has endorsed a ban on trading in
BTC, declaring the cryptocurrency forbidden under Islam.
The imam argued that
BTC carries risks of fraudulence, lack of knowledge, and cheating, Egyptian daily Ahram reported. Allam likened the trading of the cryptocurrency to gambling, which he said is also forbidden under Islam due to its direct responsibility in financial ruin for individuals.
BTC is the first decentralized digital currency, operating without a central bank or single known administrator.