From wealth to welfare: Assessing digital assets as māl in Islamic law

Abstract

This study reinterprets the classical Islamic concept of māl (property) for the digital age, using emerging digital assets –particularly cryptocurrencies– as a case through which to test Islamic legal adaptability. It reexamines the juristic definitions of māl in the Ḥanafī, Mālikī, Shāfiʿī, and Ḥanbalī traditions, developing a principle-based evaluative model built on ʿurf (societal recognition), Sharīʿah compliance, utility, and necessity. Through textual analysis of primary fiqh sources, the study finds broad agreement that ʿurf and permissibility remain the primary determinants of what qualifies as māl, while traits such as utility and transferability are secondary. Applied to cryptocurrencies, these principles yield a nuanced conclusion: although ethically neutral and functionally useful, cryptocurrencies qualify as māl within their own digital ecosystem, where they are recognized and transacted, but do not yet meet the level of predominant acceptance required in Islamic jurisprudence for universal recognition. The maximal-ḥukm li’l-ghālib – that legal judgment follows what is predominant– implies that widespread recognition must exist before Islamic law recognizes digital currencies asmālin the full Sharīʿah sense...