HaramCoinsAre stablecoins riba?
A stablecoin aims to hold a steady value, usually pegged to the US dollar. Holding a digital dollar to transact is, in itself, close to holding cash — which is not the problem.
The concern is the reserves behind it. If the issuer backs the coin with interest-bearing instruments and earns riba on them, scholars differ on whether merely holding the token implicates the user. Some permit it as a payment tool; others avoid it on precaution.
See our assessments of Tether and USD Coin. A gold-backed token such as PAX Gold avoids the interest issue but introduces gold-exchange (qabd) rules instead.
This website is an educational resource, not a religious edict (fatwa). Qualified scholars differ on cryptocurrencies; the assessments here are based on widely-recognised principles of Islamic finance and are provided for learning only. Always consult a qualified scholar before making any decision, and remember that nothing here is financial advice.