In history, paper money systems have always wound up with collapse and economic chaos. Today, the usage of fiat currency, a form of paper money and the correlate bank money has brought about wide spread hardships and sufferings upon many sectors of society and communities. Following in depth syari’ah analysis, the only conclusion that is possible is that fiat currency and bank money are illegal. They are, in reality, introduced through manipulative collaborations between governments and bank cartels, as they defy the long established sanction against riba’ (usury), operate at the advantage of a selected group in society to the detriment of the masses and the weak. To achieve broader justice, all communities have to strive to ensure that the monetary system maintain a balance between the interests of the people of all classes. This would be possible by returning to commodity-based currency and ethical banking system, which is part of the sanctions established by syari’ah.
- syari’ah; fiat currency; bank money; and riba’.
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