Cryptocurrency in Malaysia: Navigating Islamic legal perspectives for economic innovation and resilience

Cryptocurrency has emerged as a revolutionary financial instrument, transforming the global economy with its decentralised and borderless nature. In Malaysia, the compatibility of cryptocurrency with Shariah principles is a subject of intense debate. Through qualitative research methods, this paper explores the role of cryptocurrency within Malaysia’s economic framework, its implications for economic resilience, and the potential for incorporating cryptocurrencies into Malaysia’s Islamic finance sector. The findings suggest that cryptocurrency can boost economic innovation, lower transaction costs, and promote creativity. Malaysia might lead the global fintech sector by introducing bitcoin into Islamic financing, which could improve financial inclusion.