Cryptocurrency vs Islamic E-Money: Assessing Shariah Compliance and Monetary Policy Implications

Abstract

This study aims to compare the characteristics, risk levels, sharia foundations, and implications for monetary stability between cryptocurrency and Islamic e-money. The rapid development of digital financial technology has encouraged the use of both instruments in economic transactions, but they have fundamental differences that could potentially impact the effectiveness of national monetary policy. The research method used a descriptive qualitative approach through analysis of literature, regulations, sharia fatwas, and central bank documents. The results show that cryptocurrency is decentralized, highly volatile, lacks a clear underlying asset, and is vulnerable to speculation and digital security risks, which can disrupt monetary policy transmission and cause value instability. In contrast, Islamic e-money is under the supervision of Bank Indonesia and the National Sharia Board, its value is stable because it is pegged to the rupiah, and it implements sharia contracts that emphasize transparency and consumer protection, thus contributing positively to the efficiency of the payment system and the effectiveness of inflation control. Thus, Islamic e-money has better prospects as an instrument supporting national monetary stability, while cryptocurrency requires strengthened regulation and systemic risk mitigation to be safely integrated into the financial system