A simple question, and you need not have read lots of books of ahadith and/or fiqh to answer it.
Why is it that the Muslims did not create paper money?
With Peace
Why...
A simple question, and you need not have read lots of books of ahadith and/or fiqh to answer it.
Why is it that the Muslims did not create paper money?
With Peace
Originally Posted by laughinglion
A simple question, and you need not have read lots of books of ahadith and/or fiqh to answer it.
Why is it that the Muslims did not create paper money?
With Peace
“Yahya related to me from Malik that he had heard that receipts
(sukukun) were given to people in the time of Marwan ibn al-Hakam
for the produce of the market of al-Jar. People bought and sold the
receipts among themselves before they took delivery of the goods.
Zayd ibn Thabit, one of the Companions of the Messenger of Allah,
may Allah bless him and grant him peace, went to Marwan ibn Hakam
and said, ‘Marwan! Do you make usury Halal?’ He said, ‘I seek refuge
with Allah! What is that?’ He said, ‘These receipts which people buy
and sell before they take delivery of the goods.’ Marwan therefore sent
guards to follow them and take them from people’s hands and return
them to their owners.”
I would still appreciate your reflections on this...
peace
wouldnt it be because paper money is based on riba?
Yes, this is true. Muslims who are not murabitun have said this as well. Thats my answer, and I am not murabitun.
Riba is the main course for all the trouble Muslims face economically.
Here in South Africa even Ulama are not free from having to commit to these Riba transactions...
I HATE RIBA and i ask Allah to fogive us because this time we are living in is so full of evil on all fronts.
Oh and my ans would be that Muslims did not trade in paper money because it is a law That we should not spend that which we do not posess. With paper you can Fraud, Steel and lie to get it, posess it and spend it.
If we had gold or raw materials of value we would only spend that which we have and that would be more safe for all.
How does time value of money fit into this...if i borrow 1000 dollars from someone and promise to return the same amount after 1 year...now lets say the person says that today with 1000 i can buy two ounce of gold....now after one year when the time comes to repay him...i return him 1000 rupees...lets say he says that because of inflation and purchasing power now he is able to buy only 1.75 ounces of gold....so i should repay him an amount that would equal to 2 ounces of gold similar to the time purchasing power at the time when i was borrowing...this means that lets say i pay him 1250 dollars...now this additional 250 dollars is the compensation paid to him for increased infltion, purchasing power...
Now the question is that if someone calculates that how much inflation has increased....he would say 25%....now how do we equate this with interest...
because in interest we dont use gold as a benchmark but our perception of the future inflation and rates...and then discounting those rates to the present times....
how is interest than different...because it is money over money and not commodity linked?
Er...What system are you thinking in, modern or classical? Also why should you not charge a fee for looking after this mans capital for him?
They didn't want to kill trees? As for the hadith you mentioned (I came across it in a book at the Musjid on usury by the Pakistani Supreme Court) and this is not the same as paper money, since this hadith is talking about the thing like where people go out and reserve an X-Box for themselves in advance or pre-order a video game. I would understand that to be haram from that hadith, but paper money is is just representing the item which you simply won't be carrying around anymore though in modern times with the upheaval of gold being represented by it, I think the old way is better to stick to. Wallahu Alam.
A simple question, and you need not have read lots of books of ahadith and/or fiqh to answer it.
Why is it that the Muslims did not create paper money?
With Peace
Salam alaykum,
A simple question, and you need not have read lots of books of ahadith and/or fiqh to answer it.
Why is it that the Muslims did not create paper money?
With Peace
According to one of Hamza Yusuf's lectures; the Muslims in the Middle Ages were the first to spur the growth and usage of modern banking system. This is because Muslims were the frontrunners for international trade, exploration and nation building. E.g. Muslims were able to obtain and cash out their cheques from different regions/countries within the Muslim lands.
Today's paper money is based on such cheques initially. So in a way, we made it the most popular medium of exchange.
This world is as if in a mother's womb. Living in the womb, if you were told of the life to come -would your undeveloped mind be able to comprehend it?
Nay. And such is the Afterlife.
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