🧵 Why #Fiat #Currency is #Ribawi:
1/
What do you call a system where money is born out of #debt, backed by nothing, and inflated endlessly?
Fiat currency.
And according to many Islamic scholars: it’s inherently ribawi. Here’s why. 👇
2/
Debt-Driven Creation
Fiat isn’t printed out of thin air — it’s loaned into existence.
Every pound, dollar, or yen in circulation began as a debt contract.
Banks create money when they issue loans, not when governments print notes.
3/
Interest at Its Core (#Riba)
That debt accrues interest.
Meaning: the money you borrow must be repaid with more.
This surplus — interest — is riba, strictly prohibited in #Islam.
Fiat requires this process to function.
4/
Perpetual #Inflation
Because #money is created with interest, there’s always more debt than currency.
To repay old debt, new debt is needed.
This leads to inflation, loss of purchasing power, and systemic inequality.
A cycle of economic violence.
5/
Money as a Moral Instrument
In Islam, money should be a store of value, medium of exchange, and unit of account—without injustice.
Fiat violates all three when:
- It loses value over time
- It’s manipulated through interest
- It favours debt-based profit
6/
Who Benefits?
Commercial banks, governments, and debt-holders.
Who suffers?
The poor, the unwaged, and future generations.
Fiat channels wealth upward, perpetuating #usury on a global scale.
7/
We Now Have An Alternative Model
#Bitcoin can be used to avoid Riba and break free from the logic of debt-based currency.
8/
Fiat ≠Neutral
Many Muslims think using fiat is just “practical.”
But we must ask: if the money itself is born in riba, does every transaction carry its stain?
This isn’t just economics—it’s ethics.
9/
So What Can We Do?
- Learn how fiat works
- Educate yourself and your family and opt into Bitcoin as a non-ribawi financial system
- Question what we use, not just how we use it
10/
Fiat currency isn’t just inconvenient.
It’s a system built on compounding debt and institutionalised riba.
As Muslims and people who believe in ethics and justice in money matters, let’s reclaim economic integrity— one concept at a time.
