The Nature of the Blockchain Technology and the Exchange of Digital Currencies in Iranian Law and Imamie Jurisprudence

Bitcoin is an electronic innovation similar to non-backed money (fiat money) and is set to not be managed by any bank or institution and in some ways is considered a digital payment. Therefore, this virtual currency operates on a network called Blockchain. In other words, Blockchain is an infrastructure similar to a ledger based on which Bitcoin and other cryptocurrencies operate. Bitcoin is not produced and published by a specific group or website, and only a group of users have been generating and releasing Bitcoin by its extraction process which is called mining, or this mysterious digital currency has been converted using digital exchanges and used in the trades of individuals. Nevertheless, in this paper, we will discuss the legitimacy or non-legitimacy of digital currencies through the legal concept of the Blockchain and digital currencies. According to Article 10 of the Civil Code and Article 2 of the e-commerce law, these transactions are entirely correct and lawful. However, according to some jurists, buying and selling Bitcoin, as a major example of digital currency, is a subject of concern.