Fiat Currency : Halal That Which Is Not Tayyib

Wang Fiat: Halal Yang Tidak Tayyib

Abstract

The credibility of the use of fiat currency in the global financial system is being argued at present. It is not argued that the use of fiat currency gives more advantages compared to the use of barter system. The use of the currency is economic and convincing as it could overcome the problem of unjustified counter-value and unstandardized consideration. Nevertheless, contemporary Muslim scholars are arguing on the credibility of fiat currency particularly with the political changes of many developed countries. Previously, most qualified Muslim scholars (ulama’) viewed the use of fiat currency in Islamic financial system as recommended (harus). However, the permissibility of fiat currency usage might change as the several incidences had indicated the negative impacts on its use. Therefore, more studies and researches are needed to be conducted for further clarification. The issue of fiat currency usage is required to be redefined by the contemporary Muslim scholars and expertise. This is to ensure that the practice of Islamic economic and finance is just and comprehensive.