In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Bitcoins are a new form of transaction that facilitates buying and selling. There is nothing wrong with inventing such transaction methods as long as it does not entail any cheating or defrauding people.
Responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
Are Bitcoins halal in Islam?
If my understanding is correct, bitcoins are a new form of transaction that facilitates buying and selling. There is nothing wrong with inventing such transaction methods as long as it does not entail any cheating or defrauding people.
According to the Islamic rules of jurisprudence, people are free to innovate new forms of transactions or customs as long they do not contradict the principles of the Shari`ah.
In regard to customs, permission is the rule, and prohibition is an exception. As for the acts of worship, the opposite is the rule: In other words, we are not allowed to innovate new forms of worship.
Historically, people have been innovating new methods of transactions: the use of cash for sales or purchases is such an innovation; before it, they were bartering commodities.
Nowadays, people use cards instead of ready money. All of these are methods of transactions invented to facilitate the transfer of goods and services.
In conclusion, there is nothing wrong with using this method, provided it is free of cheating or defrauding people.
Almighty Allah knows best.