The responsibility of the Islamic State in dealing with fake transactions and its solutions

Subject Areas : Economic jurisprudence and Banking

Amir Jawadi ¹ , Mohammad Babapoor ² , Abdolali Mohammadi Jozani ³

1 - PhD Student, Private Law, Varamin Branch, Islamic Azad University, Varamin, Iran.
2 - Assistant Professor, Department of Private Law, Islamic Azad University, Varamin, Iran.
3 - Assistant Professor, Department of Private Law, Islamic Azad University, Varamin, Iran.

Received: 2022-04-10 Accepted : 2022-06-11 Published : 2022-03-21

Keywords: Escape from debt, virtual transactions, cryptocurrency, smart contract, economic security,

Abstract :

With the introduction of cryptocurrency into the world of economy, smart contracts were formed based on it and are now partially popular. Experts in this field believe that in case of widespread use of this type of contracts, the possibility of formal transactions will disappear. Despite conducting numerous researches on smart transactions, the discussion of virtual transactions has not been investigated in this field, and this research, using an analytical-descriptive method, is for the first time trying to investigate the responsibility of the Islamic government in this regard. It seems that due to the negative effects of formal transactions in the society, if a special mechanism can eliminate these transactions, the Islamic government is responsible for making them mandatory. According to jurisprudential interpretations, providing social and economic security is the government's duty, which is an example of the mandatory smart contract with the aim of eliminating formal transactions. From a legal point of view, the executive and judicial authorities can send a bill to the Islamic Council regarding the mandatory use of smart contracts in order to provide legal protection and also to prevent the occurrence of crimes. Monopoly in the smart type of contracts is contrary to Islamic Sharia and its partial acceptance is possible like electronic transactions. If the related law is not approved, the executive bodies in charge of certain affairs can use their authority to make these contracts mandatory. The final result is that with the relatively mandatory smart contract and the popularization of cryptocurrency, it is possible to eliminate formal transactions and this action is considered to improve economic security.