A paper presented at Cyrptocurrencies in Their Second Decade : A Technical and Shariah Analysis
Encrypted digital currencies have witnessed remarkable development since the emergence of the first type, Bitcoin, about twelve years ago. This development has included the emergence of new categories, in addition to the first category, ‘payment tokens’, which did not carry any benefits other than their design as a means of payment and a medium of exchange. Other types have emerged that are designed as tokens that represent assets, or securities, or benefits. This has been accompanied by the development of hybrids that are programmed to act as media of exchange on the one hand but which also represent assets or are linked to other benefits on the other hand. They have also been accompanied by administrative and economic applications that have been developed to benefit from encrypted digital currencies. On the organizational level, the overall ecosystem has expanded and become more intertwined, and most of the trading platforms have become regulated. Companies have emerged that provide deposit, investment and financial advisory services, in addition to companies that facilitate payments in encrypted digital currencies, and there are international bodies, organizations and research centers that are interested in encrypted digital currencies and the crypto-economy. Most developed countries have tended to allow the trading of encrypted digital currencies according to special regulations that are somewhat similar to the regulations for securities. Nevertheless, some countries have allowed it to be traded as a payment method or a special currency without giving it the status of legal tender. El Salvador has recently recognized Bitcoin officially, becoming the first country to adopt Bitcoin as its official currency…
