Blockchain Technology
QUESTION:
Is blockchain technology permissible or not, as an accepted form of payment?
ANSWER:
What is blockchain payment and how does it work?
A blockchain payment moves a transaction over a decentralized network instead of through banks or card networks. To make a payment, you send digital assets from one digital wallet to another, and the transaction is recorded on a shared ledger that anyone can verify. This design was first demonstrated in 2008 when Bitcoin’s creator described it as, “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” That principle still drives blockchain payments today, whether they’re in Bitcoin, stablecoins, or other cryptocurrency.
What are the different types of blockchain payment systems?
Blockchain-based payments come in multiple forms, each with its own infrastructure, trade-offs, and adoption curve. Businesses choose between them based on stability needs, consumer preferences, and transaction speed requirements.
Cryptocurrencies
These are the original blockchain payment vehicles, starting with Bitcoin. Payments are broadcast to a decentralized network, validated, and added to the blockchain’s public ledger. Once confirmed, they’re irreversible. Crypto enables direct, peer-to-peer payments without intermediaries and works globally for anyone with internet access. But price volatility can make crypto impractical for pricing goods and services: a payment worth $100 at checkout might be worth $95 or $105 by the time it settles.
Stablecoins
Stablecoins are a specific type of cryptocurrency that’s pegged to a stable asset, often a fiat currency such as the US dollar or the euro. They’re a newer category built to fix crypto’s volatility problem. Popular examples include USDC and USDT. Stablecoins maintain consistent value while keeping blockchain’s speed, low cost, and global reach. A payment in 100 USDC today will still be worth roughly $100 tomorrow. These payments are favoured for cross-border trade and high-volume settlement.
Central Bank Digital Currencies (CBDCs)
CBDCs are government-issued digital money that can be built on a blockchain or another distributed ledger technology. They offer quick, secure transfers backed by a central bank and combine the reliability of fiat with the efficiency of blockchain rails. Currently, most are tightly controlled and permissioned, unlike public blockchains. As of 2025, more than 130 countries and currency unions are exploring CBDCs. Nigeria, the Bahamas, and Jamaica all have live retail CBDCs. But CBDCs are still years away from broad adoption in most economies. (Re: https://stripe.com/resources/more/blockchain-payment-overview)
Based on the above, we are not in favour of using block chain technology as a form of payment. There are many red tapes and uncertainty around it due to dealing in Cryptocurrency, etc. It will be best to abstain from it.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Abdul Kader Fazlani
Date: 14 Jumaadal-Ulaa 1448 / 26 October 2026
CHECKED AND APPROVED BY:
Mufti Yacoob Vally Saheb