An Econophysics-Based Reinforcement Of The Indonesian Ulema Council (Mui) Fatwa On Cryptocurrency – Preliminary Study Of Dinar Dirham

Abstract

This study explores the strengthening of the Indonesian Ulema Council (Majelis Ulama Indonesia/MUI) fatwa on cryptocurrency through an econophysics-based approach. Cryptocurrency has emerged as a disruptive financial innovation, offering efficiency in transactions and decentralized control, yet it also raises significant ethical, legal, and economic challenges, particularly within the framework of Islamic finance. Previous MUI fatwas have addressed cryptocurrency primarily from the perspective of Islamic jurisprudence, focusing on its uncertainty (gharar), speculation (maysir), and compliance with Sharia principles. However, such normative evaluations are often insufficient to capture the complex and dynamic behaviors of cryptocurrency markets. This research proposes the integration of econophysics—a discipline that applies methods and models from physics to analyze economic phenomena—to provide a more comprehensive basis for fatwa formulation. By employing models of volatility, complexity, and systemic risk, econophysics offers empirical insights into the speculative tendencies, stability, and long-term sustainability of cryptocurrency. Strengthening the MUI fatwa with an econophysics perspective enables a more evidence-based, interdisciplinary, and contextually relevant framework that bridges Sharia law with modern financial dynamics. This approach not only enhances the credibility and adaptability of Islamic legal rulings but also contributes to policy development in Indonesia’s financial sector. Ultimately, the study highlights the importance of combining normative religious judgments with scientific analysis to address contemporary economic challenges, ensuring that Islamic finance remains both principled and responsive in the era of digital transformation.