Answered by: Maulana Jamal Ahmed
Paper Currency has no intrinsic value. Is it halal?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Mufti Taqi Uthmani, after discussing the different opinions, prefers the opinion that paper currency has become customary money (thaman urfi). Fiqhi Maqalat, vol. 1, pg. 15, Mayman Islamic publishers.
This means that it has value based on the custom of the people which is valid in Islam although it does not have intrinsic value. Therefore, paper currency will be halal and will be treated as real money.
Only Allah knows best.
Written by Maulana Jamal Ahmed
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham