Are Memecoins Like Dogecoins Halal?
Shafi'i Fiqh
Answered by Shaykh Muhammad Carr
Question
Are meme coins like Dogecoin permissible (halal) in Islam? What criteria must a cryptocurrency meet to be considered halal, enabling me to evaluate the permissibility of future meme coins?
Answer
Thank you for your question.
I pray you are in good faith and health. Thank you for your question.
The recognition of a form of property as a currency would appear to hinge on one of two factors potentially:
- Sovereign issue
- Social concurrence to accept. [Muhammad Taha Karaan]
If Dogecoin, in fact, meets this criterion, it will be accepted as a currency.
What Are Dogecoins?
Investopedia defines Dogecoin (DOGE) as a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and was launched in December 2013 with the image of a Shiba Inu dog named Kabosu as its logo. Dogecoin’s blockchain has merit with its underlying technology derived from Litecoin. Notable features of Dogecoin—which uses the Scrypt algorithm (pronounced ess-crypt)—are its low price and unlimited supply. [Investopedia]
Caution
Digital cryptocurrencies involve significant risks, and engaging with them may be considered a form of uncertainty, particularly since they lack sovereign backing. Therefore, Muslims should exercise caution.
And with Allah alone is our success.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
