Model Dinar and Dirham Digital Currency for Islamic Commercial Transaction

Abstract

Cryptocurrency is predicted to have a bright future as a new form of 
\nmoney becomes more popular. This research analyses the
\npotential disruption of cryptocurrency from an Islamic perspective.
\nHowever, this promising Islamic cryptocurrency has shifted from
\nnon-asset backed to physical asset- backed of cryptocurrencies. We
\nproposed design implementation the most straightforward way of the
\ntransaction with cashless wireless payments using one device
\nthrough Distributed Ledger Technology (DLT) of blockchain
\ntechnology. We use digital currency with underlying asset Dinar and
\nDirham for a commercial transaction. However, the disruption of
\ncryptocurrencies may adapt Dinar and Dirham tokenization in
\nexchanging services in the conversion of fiat money into
\ncryptocurrency that complies with Islamic. Except comply with
\nIslam, it also needs a Special Purpose Vehicle (SPV) as a party who
\nguarantees the existence of assets. It concludes that the
\nintermediation function of third parties such a bank will be disrupted
\nin the profound shift of digital money based on Islamic
\ncryptocurrency