Manifestations of Infringement on the Public Authority's General Jurisdiction in Currency Issuance and Management from an Islamic Perspective

Abstract:This study aims to identify and analyze the forms of infringement on the sovereign right of public authority in issuing and managing currency. It focuses particularly on the context of the fractional reserve banking system and the technological advancements enabled by globalization, which have facilitated the creation and promotion of virtual currencies.

Methodology: The study employs a composite approach that combines historical induction with logical reasoning to uncover the forms of infringement on the public authority’s jurisdiction in relation to both traditional and emerging forms of money.

Findings: The research concludes that safeguarding the public authority’s exclusive right to issue and manage currency is a priority of Islamic legal policy. This requires vigilance against practices that undermine this right due to their adverse effects on the fairness and efficiency of the monetary system.

Originality: The paper’s originality lies in its classification of credit money creation and the issuance or mining of virtual currencies as contemporary forms of infringement on the public authority’s jurisdiction, comparable to the counterfeiting of paper money.

Keywords: Usurpation, Counterfeiting, Credit Money, Electronic Money, Virtual Currencies, Bitcoin, Mining