In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 230 (1/24)

Smart Contracts: Activation and Reversal Methods (Study of Smart Contracts and the Extent of

their Relation to Cryptocurrency)

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 24th session in Dubai, United Arab Emirates, on 7–9 Rabīʿ al-Awwal 1440h (4–6 November 2019),

Having examined the research papers submitted to the Academy concerning Smart Contracts: Activation and Reversal Methods (Study of Smart Contracts and the Extent of their Relation to Cryptocurrency),

Having listened to the in-depth discussions on the subject,

Resolves

First: confirmation of the resolution of the International Islamic Fiqh Academy no. 52 (3/6), in its sixth session, held in Jeddah in 1440/1990, with all its paragraphs, on contracting using modern communication devices. This resolution also applies to electronic contracts which are independent of smart contracts.

Second: the concept of smart contracts; It is an automatically implemented contract between two parties based on the idea of a peer-to-peer system through a decentralized distribution network (blockchain), which operates by encoded (encrypted) currencies such as bitcoin and others.

Third: smart contracts are concluded via private centralized or public de- centralized platforms and generally use cryptocurrencies.

Fourth: the Academy resolved to postpone adopting a resolution on the subject, until holding a specialized symposium on smart contracts and after adopting a resolution on cryptocurrencies, in order to study all aspects of smart contracts, with a focus on those mentioned in paragraph (2). Moreover, it would be advisable to invite technical specialists in the blockchain, crypto- currencies and related areas.

Indeed, Allāh is All-Knowing.