When someone says “Bitcoin has no riba,” they mean that, unlike fiat currencies (which nation-states force us to use), Bitcoin does not come into existence through riba or interest-based credit expansion.

Fiat money—such as dollars, pounds, euros, rupees, riyals etc..—are created by central banks and commercial banks, which hold a monopoly on money creation. These banks can simply create more money through a mere accounting entry. Fiat currency is not backed by gold; it is backed by riba (interest-based debt). This system is the primary cause of inflation because when banks expand the money supply through riba debt, the fiat money in your possession loses purchasing power over time/years, which affects your ability to save for the future.

Gold, in contrast, is extracted from the earth. People mine it from large pits or underground, then refine it into bars or coins. This process requires significant human and machine labour. One of the main reasons gold is valuable is because it is scarce.

Bitcoin aims to replicate this gold mining process in the digital era. Instead of physical digging, people invest in and use specialized computers to solve complex mathematical problems. When these problems are solved, new Bitcoins are released. There will only ever be 21 million Bitcoins, ensuring a hard cap. Thus, like gold, Bitcoin is scarce—but algorithmically so.

In essence, both gold and Bitcoin mining are tied to a “proof of work” (PoW) concept, involving energy expenditure. In contrast, fiat money creation by banks is not tied to mining or proof of work; it is based on monetary policy decisions and riba/interest-driven debt creation and management.

I agree with Max Keiser that Bitcoin is not linked to riba in its creation/mining, unlike fiat currencies. However, it is important to note that individuals like Max Keiser do not share the same moral objections to riba/interest as Muslims and Christians. In fact, Keiser is pro-riba, which is why he supports concepts like Bitcoin interest-bearing bonds in El Salvador and other interest-driven ventures within the Bitcoin industry.

The prohibition of riba/interest is directly related to protecting wealth. God forbids interest, one reason why might be related to the way it distorts free markets and leads to exploitation, where the rich (bankers and corporations) become wealthier at the expense of the rest of society. This is precisely what occurs under the current global central banks fiat monetary system facilitated by riba.

By prohibiting interest, Islam promotes truly free markets and equitable business investments where risk and reward are shared equally. This approach ensures that wealth circulates fairly throughout society and helps avoid financial crises like those caused by interest-based systems (e.g., boom-bust cycles). It also emphasizes helping others through interest-free loans, ensuring that wealth benefits society as a whole. This strengthens family , local communities and, by extension, nations.

Ultimately, a person can engage in interest-bearing contracts with any form of money—be it gold, fiat, Bitcoin etc… It depends on their worldview. If someone does not believe in God, the Creator of the universe, or that He has sent commandments and prohibitions through prophets/revelation to guide us on how to live a good life and as a test before death, resurrection, and ultimate accountability in the afterlife, they will follow their desires. They become their own god, where good and bad are subjective, based on personal interests and passions, rather than objective truths. Without God there is no objective anchor on right and wrong / morality.

The Prophet Muhammad (peace and blessings be upon him) said:

“A time will come upon people during which they will consume interest.” It was asked, “All of the people?” The Prophet replied, “Whoever does not consume it will be affected by its dust.” (Musnad Aḥmad 10191)

“For their engagement in interest, despite being forbidden from it, and their unjust consumption of people’s wealth, we have prepared a painful punishment for the disbelievers among them.”

~ Qur’an 4:161

“Oh, you who have believed, do not engage in interest, doubled and multiplied. Instead, fear God, so that you may achieve success.”

Qur’an 3:130

Whatever loans you give, only seeking interest at the expense of people’s wealth will not increase with Allah. But whatever charity you give, only seeking the pleasure of Allah—it is they whose reward will be multiplied.

~ Qur’an 30:39

“Those who engage in interest will not stand, except as stands one whom the Devil has driven to madness by his touch. This is because they say, “Trade is just like interest,” but Allah has permitted trade and forbidden interest. Those who, after receiving direction from their Lord, desist shall be pardoned for the past; their case is for Allah to judge. However, those who repeat the offence are companions of the Fire, and they will abide therein forever.”

~ Qur’an 2:275