Potential and Challenges of Sharia Crypto as a Halal Investment Instrument in Indonesia

Along with the development of financial technology, cryptocurrency is starting to be recognized in Indonesia as an investment instrument. However, in the midst of its popularity, questions have arisen regarding the compatibility of cryptocurrencies with sharia principles. Some parties see the potential of crypto as a halal investment instrument, but there are challenges that need to be faced, especially related to price uncertainty and speculation. This study aims to explore the potential and challenges of sharia crypto as a halal investment instrument in Indonesia and provide recommendations for the development of better regulation and supervision. This research uses a qualitative approach with literature analysis and interviews with Islamic finance experts and crypto industry practitioners. The data collected is analyzed descriptively to understand the legal, economic, and practical aspects of sharia crypto in Indonesia. The results show that crypto has great potential to become a halal investment instrument if it can fulfill sharia principles, such as transactions that are free from gharar (uncertainty) and maysir (gambling). However, the main challenge lies in the high price volatility and lack of clear regulations from the government regarding the implementation of sharia on crypto assets.