The Epistemology and Trajectory of Money in Islamic Economics: Sharīʿah Regulations and Contemporary Economic Relevance

اسلامی معاشیات میں زر کا علمی و ارتقائی مطالعہ: شرعی ضوابط اور معاصر معاشی معنویت

Abstract

Money (Zar) is one of the oldest and most fundamental institutions of human civilization, playing a pivotal role in facilitating economic activities, regulating commercial transactions, and driving socioeconomic development. Beyond being a mere medium of exchange, money serves as a crucial measure of value and a store of wealth. Islam, as a comprehensive way of life, provides robust ethical and legal guidelines governing the creation, circulation, and utilization of wealth, prioritizing socioeconomic justice over purely materialistic models.

Using a qualitative, historical, and analytical methodology, this study examines the Islamic concept of money, investigating its lexical and technical dimensions, classical jurisprudential rulings, and monetary evolution from the barter system to gold Dinars, silver Dirhams, fiat currency, and modern digital/crypto assets. It evaluates the core intrinsic functions and Sharīʿah limitations imposed on currency to prevent economic exploitation, inflation, and unearned wealth generation (such as Riba and Gharar). The findings indicate that while Islam adapts to contemporary technological advancements in monetary mediums, the functional stability and ethical benchmarks of modern currencies must align with the objectives of Islamic law (Maqasid al-Sharīʿah). Ultimately, this research provides strategic insights into how Islamic monetary thought can address contemporary global financial instabilities.