Bitcoin is acceptable in the eyes of Allah,
a mosque has declared, as it becomes the first in the UK to accept cryptocurrency
donations.
Religious advisers at the Masjid Ramadan in
Dalston, east London, have said the currency is halal if it is "transacted
in a lawful manner".
There has been significant debate about
cryptocurrency in the Muslim world, with figures including the Mufti of Egypt
suggesting it is haram, or forbidden, because it is used by some for illegal
activity.
Because of its anonymous nature bitcoin has
become associated with buying drugs and other unlawful items online.
But the mosque has declared that Muslims
can use it for their Ramadan donation, known as zakat.
Muslims are meant to give away 2.5 per cent
of their wealth to charity during Ramadan, an annual donation which is
compulsory for all but the poorest Muslims.
The mosque, also known as Shacklewell Lane
Mosque, will accept donations in two different cryptocurrencies, Bitcoin and
Ethereum.
It has received advice from Shoreditch
startup Combo Innovation, a blockchain company which focuses on Islamic
finance.
The money is used to carry out repairs at
the mosque, offer help to families who are struggling to pay funeral costs and
shelter and feed the poor.
Zayd al Khair, a religious adviser at the
mosque, said: "Any money or currency is neither halal ? permissible ? nor
haram ? impermissible.
"Guidance is about the value which it
represents. If money is transacted in a
lawful manner then it is halal.
"We do not always know the source of
cash donations, but we take these in good faith too."