Nopita Sari, Nurul Ain Safrizon, Basarudin Basarudin, Adam Idris
The increasing adoption of blockchain technology in Islamic finance has prompted growing interest in its application for smart contracts within murabahah financing structures. The digital transformation of financial transactions raises important questions regarding Sharia compliance, contractual validity, and legal enforceability in decentralized systems. This study aims to examine how blockchain-based smart contracts can enhance transparency, efficiency, and trust in murabahah financing while maintaining strict adherence to Islamic legal principles. A qualitative-doctrinal research method was employed, integrating analysis of classical fiqh al-mu’?mal?t with contemporary regulatory frameworks governing digital transactions and smart contract implementation. The study utilized comparative analysis of existing blockchain platforms and Islamic financial models to identify areas of alignment and potential conflict. The findings indicate that blockchain technology supports murabahah transactions by automating contract execution, eliminating asymmetrical information, and ensuring compliance with Sharia requirements for ownership transfer and cost disclosure. However, challenges remain in achieving legal recognition of decentralized contracts within conventional judicial systems. The study concludes that blockchain-based smart contracts can be considered Sharia-compliant when developed under proper legal supervision and governance mechanisms, offering a promising pathway for digital transformation in Islamic finance.
Purpose This study aims to examine the spillover effects between cryptocurrencies, stablecoins and Islamic stock indices, focusing on their interactions during crises. Islamic stocks have historically been more resilient during crises due to their adherence to Shariah principles. Time-varying parameter vector autoregression (TVP –VAR) method will allow the study to look at the spillover over time. Design/methodology/approach Using the TVP–VAR model, the study analyzes daily return data from January 1, 2018 to September 30, 2024. The data includes Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and large-, mid- and small-cap Islamic stock indices. Findings The findings reveal that cryptocurrencies such as BTC and ETH exert stronger spillover effects on Islamic stock indices compared to stablecoins like USDT). However, Islamic stocks remain largely insulated from crypto spillovers, with any spillovers predominantly flowing from stocks to cryptocurrencies. Large-cap Islamic stocks are more susceptible to cryptocurrency spillovers, whereas mid- and small-cap stocks tend to transmit more volatility to crypto assets. Crises amplify these effects, with COVID-19 causing a sharp but short-lived impact, while the 2022 crypto crash led to more prolonged and intense spillovers, particularly affecting large-cap stocks. Notably, stablecoins exhibited no measurable spillover effects on Islamic stocks during the 2022 crypto crash, reinforcing their role as stabilizers in volatile markets. This reinforces the role of stablecoins and Islamic stocks as a relatively stable investment during crypto-related crises. Practical implications The findings suggest that Islamic stock investors face lower exposure to cryptocurrency crisis volatility. Furthermore, stablecoins could be a valuable addition to Islamic investment portfolios. Originality/value This study expands the limited understanding of how stablecoins influence Islamic stock markets. It adds further depth by examining spillover effects across different market capitalizations.
Since its inception in 2009, cryptocurrencies have been a subject of debate in literature. In the general literature, the debate is mainly about the legality and application of these currencies while in Islamic literature, the debate is about its compliance with Sharia rules and directions. The primary objective of this study was to analyze current cryptocurrencies using a novel methodology and propose a new Islamic cryptocurrency, called “Halal Coin”. To achieve the objectives of this study, a qualitative research method was followed by analyzing how the included cryptocurrencies work, analyzing some of its data for the period from January 1, 2023 to May 31,2025, and determining the characteristics of the proposed coin. Data used in this study were analyzed using descriptive statistics and the measure of “value at risk”. The results revealed that none of the current cryptocurrencies are Sharia-compliant, and the proposed Halal coin is characterized by 15 attributes, including being accessible to all people, serving as a unit of account, and being free from high volatility.
In the world of increasing population with ever increasing strain on law enforcement agencies and judiciary, lack of imparting justice in time has become a major concern. The lack of timely justice has adversely affected the society’s ability to both administer and regulate public relations and affairs. In the middle of such concerns, Blockchain and Smart Contracts can play a pivotal role in managing society and ensuring a balance between criminal intent and legal sanction. Blockchain is a decentralized distributed framework where all nodes in the network collaborate on an equal footing to maintain necessary properties and functions. First introduced in 2008 via a seminal work ‘Bitcoin,’ the principles underlying cryptocurrency have shown immense potential. As of 2023, Blockchain is an institutional technology reshaping the current internet (web version 2.0) forcing it to evolve to web 3.0. It is the basis of ‘smart contracts,’ ‘distributed applications,’ ‘token economies and ‘decentralized autonomous organization.’ This paper dwells on two such applications, namely, cryptocurrency and smart contracts wherein we explain the technologies while highlighting legal challenges and open questions which need significant attention.
Wan Amir Azlan Wan Haniff, Redwan Yasin, Rahmawati Mohd Yusoff, Asma Hakimah Ab Halim · 6 authors
The article investigates the challenges and prospects of the ruling of Waqf Crowdfunding (Waqf-CF) scheme adoption in Malaysia as Shariah-compliant fintech successors deployed to mobilize Islamic endowment. However, the implementation of Waqf-CF is hindered by a number of challenges, such as the uncertainty of the legal aspects and fragmented governance, along with technology limitations and Shariah compliance issues. Using a qualitative approach, insights were gathered from seven experts 7 experts in finance, academia, and business to inform and guide our work. The results suggest that poor coordination of regulation between federal and state governments, varied modes of governance, and a lack of fintech literacy in waqf bodies are the barriers to successful implementation. In this regard, the paper examines the Waqf-CF models currently being used, including the Crowdfunding-Waqf Model and the Hasanah Platform, by highlighting the pros and cons of each. Based on these, the authors present a sophisticated hybrid model combining blockchain-based smart contracts, AI-led risk profiling, and real-time Shariah auditing for increased trust, transparency, and scalability. Finally, the paper calls for the need of a national regulatory framework and better institutional support to drive Waqf Crowdfunding as an ethical and sustainable funding option that is in line with Maqasid al-Shariah and the nation’s vision to be a global Islamic financial hub.
Purpose – This study aims to analyze the controversy surrounding cryptocurrency from the perspectives of Muhammadiyah and Nahdlatul Ulama (NU), focusing on their respective fatwas, the underlying juridical argumentation, and the social and economic implications of these religious rulings in Indonesia.Methodology – Employing a qualitative normative legal approach, the research conducts a comprehensive document analysis of official fatwas issued by Muhammadiyah and NU, complemented by secondary sources such as academic articles, news reports, and government regulations related to cryptocurrency in Indonesia.Findings – Both Muhammadiyah and NU consistently declare crypto-currencies haram (forbidden) primarily because of Islamic legal principles prohibiting gharar (excessive uncertainty), maisir (gambling), and the lack of state sanctions and consumer protection. While sharing this conclusion, the two organizations differ in their juridical methodologies, with NU exhibiting more contextual flexibility through internal debates and regional councils. Implications – The fatwas serves as authoritative guidance shaping Muslim consumer choices and government regulations, reinforcing Islamic ethical standards in financial transactions. However, they also create tension between technological innovation and religious compliance, posing challenges to fintech adoption and inclusive economic growth. The findings suggest the need for ongoing dialogue between scholars, regulators, and industry stakeholders to reconcile Sharia compliance with digital financial innovation.Originality – This study provides an original contribution by offering a comparative, in-depth analysis of the legal reasoning within the Muhammadiyah and NU fatwas on cryptocurrency, linking doctrinal argumentation to broader socioeconomic outcomes. It fills a gap in the existing literature that mostly catalogs fatwa content without examining their interpretive nuances and practical impacts in Indonesia’s unique socio-religious context.
Purpose – Non-Fungible Tokens (NFT), one of the latest innovations in the financial world, have succeeded in triggering debate among the public, especially in terms of Islamic financial principles. Therefore, this study seeks to explore the gap between public societies’ perspectives on NFT on Twitter and the discourse conveyed by experts in research articles or journalists in popular articles. Methodology: This study combines two analyses, namely sentiment analysis, using the R Studio application to categorize public opinion into positive, neutral, and negative sentiments. Discourse analysis uses the NVivo 12 application to identify critical themes in scientific writing.Findings – The results show various perceptions of positive sentiments often associated with NFT and innovation. By contrast, negative sentiments focus on speculation, lack of clarity, and the potential to conflict with the principles of Islamic finance. These findings convey concerns about the speculative nature of the NFT and its compliance with Sharia law. However, some scholars argue that NFT can be structured according to Islamic ethics if proper guidelines are followed. Implications – This study contributes to bridging the gap between public perception and scholars, so that insights arise regarding NFT as perceived within the framework of Islamic finance. Originality – We believe this study is the first qualitative study to investigate public sentiment about NFT from Twitter/X and discuss it with the principles of Islamic finance.
Adimas Agus Ahmad Asy’arie, Arlinta Prasetian Dewi, Binti Nur Asiyah
This paper proposes a conceptual blockchain-based Sharia accounting model designed to enhance transparency and trust within Islamic Financial Institutions (IFIs). The research addresses the growing yet challenged Islamic finance industry by leveraging blockchain's inherent features, including immutability, decentralization, and smart contracts. The model aims to improve accountability, reduce fraud, and strengthen Sharia compliance by providing real-time, verifiable financial records. This approach offers a novel contribution by systematically integrating advanced technology with Islamic ethical principles, leading to more robust and reliable financial reporting for all stakeholders.
Purpose:The rapid growth of cryptocurrencies has revealed a significant disconnect between speculative digital assets and the ethical principles of Islamic finance.Bitcoin's volatility, three to four times higher than traditional equity indices, along with its energy-intensive mining process, directly contradict Shariah principles emphasizing stability, asset-backing, and minimization of gharar (excessive uncertainty).This study addresses the gap between blockchain technology's potential and the requirements of Islamic financial systems by proposing and empirically testing a Shariah-compliant digital finance model.Design/Methodology/Approach: A mixed-method approach was employed, integrating a PRISMA-guided systematic literature review, panel data analysis of 100 fintech firms from 2018 to 2024, and Monte Carlo simulation.Fixed-effects regression was used to assess the impact of blockchain adoption on financial performance (ROA, ROE) in both Islamic and conventional fintech firms.The simulation evaluated the efficiency of a Hybrid Shariah Blockchain Model for tokenized waqf (Islamic endowment) operations.Findings: Results indicate that blockchain adoption significantly improves financial performance in Islamic fintech (ROA: = 0.023, t = 3.41; ROE: = 0.067, t = 2.79).Simulation results demonstrate a reduction in transaction latency from 3.2 days to 12.4 seconds (95% CI: 10.1-14.7),complete auditability, and transaction costs below $1.00 per operation.Practical Implications: Policy recommendations include regulatory sandboxing and institutional integration strategies to mainstream Shariah-compliant blockchain applications.Originality/Value: This study presents the first simulation-based validation of waqf blockchain governance grounded in Islamic jurisprudence, offering a scalable framework for ethical, decentralized financial services benefiting 1.8 billion Muslims worldwide.
The integration of blockchain-based smart contracts technology has emerged as an innovative solution in banking. The utilization of blockchain technology and smart contracts offers great potential in improving operational efficiency and compliance with Shariah principles in Islamic banking products. Overall, blockchain-based smart contracts have the potential to overhaul the traditional way of providing Islamic banking services, by providing more efficient, transparent, and inclusive solutions. This research emphasizes the need for technological readiness and supportive policies for the successful implementation of this technology in the Islamic banking sector. This article discusses the potential use of smart contracts in strengthening automation and sharia compliance in Islamic banking products, focusing on the role smart contracts can play in increasing Islamic financial inclusion and expanding access to Islamic banking services and how prepared Islamic financial institutions are to adopt blockchain technology and smart contracts. That way, the utilization of blockchain-based smart contracts integration can be seen as better to bring significant changes in the Islamic banking sector, both in terms of increasing efficiency and in strengthening sharia principles which are the main foundation of the Islamic financial system.
Introduction: The rapid development of digital technology has introduced new challenges in the practice of inheritance distribution, particularly concerning digital assets such as cryptocurrency and NFTs.Purposes of the Research: This study aims to explore gender justice in the distribution of digital inheritance, focusing on the Islamic fiqh perspective toward cryptocurrency and NFTs assets in Dubai.Methods of the Research: Using a qualitative approach, the research analyzes fiqh texts, existing regulations, and real-life cases related to digital inheritance. Data were collected through document analysis, case studies, and expert interviews involving Islamic scholars and digital asset practitioners in Dubai.Results of the Research: The findings reveal that digital inheritance, characterized by unique properties such as anonymity and the need for secure access, presents significant challenges in ensuring fair distribution, especially for women. The study highlights cultural and technological barriers that limit women’s access to digital inheritance, despite their growing economic contributions. The novelty of this research lies in proposing a contemporary fiqh framework that integrates traditional Islamic principles with modern technological solutions such as blockchain, aiming to ensure transparency and fairness in inheritance distribution. By addressing the gender gap in digital inheritance, this research contributes to the development of equitable and practical fiqh guidelines for Muslim communities in the digital era.
Kaharuddin Kaharuddin, Asep Saepudin Jahar, Arta Amaliah Nur Afifah
Blockchain technology introduces an innovative approach to waqf governance by incorporating smart contracts based on distributed ledger technology and encryption security. This advancement enhances administrative services and strengthens public trust in waqf management. This research uses a qualitative descriptive approach based on a literature review to explore the benefits of applying blockchain technology in waqf governance. The findings reveal that blockchain technology significantly improves the previously unstructured waqf governance system. By enabling encrypted and decentralised transaction recording, blockchain ensures transparent management of waqf funds, facilitates efficient tracking of fund status, and prevents data manipulation. Additionally, blockchain enhances the efficiency and security of transactions, paving the way for an innovative and digital waqf ecosystem. The technology also promotes financial inclusion by expanding public access to participate in waqf initiatives. This broader participation contributes to poverty alleviation (SDG 1) and reduces economic disparities (SDG 10) through waqf funds’ transparent and accountable distribution. Integrating blockchain technology into waqf governance offers a transformative solution for advancing transparency, efficiency, and inclusivity in Sharia financial systems.
Zahiduzzaman Zahid, Ruhul Amin, Ibrahim Khalil, Basharat Ali Khan Mohammed · 5 authors
This paper investigates the intersection of MiCA and Islamic finance by conducting a comparative regulatory analysis, focusing on core areas such as stablecoin structures, decentralized finance (DeFi), smart contracts, and ethical governance. It critically examines MiCA’s reserve and redemption frameworks for asset-referenced tokens (ARTs) and e-money tokens (EMTs) against Shariah mandates of asset-backing, risk-sharing, and prohibition of riba (interest) and gharar (excessive uncertainty). The analysis further explores the legal and ethical tensions between MiCA’s treatment of decentralized assets and Islamic jurisprudence, especially regarding profit-sharing models like Mudarabah and Musharakah. It highlights challenges Islamic fintechs operating within the EU face, including the lack of recognition for Shariah boards and faith-based audit systems under MiCA. The study concludes by proposing policy recommendations for greater inclusivity, including potential amendments to MiCA that accommodate ethical finance models and support Islamic digital financial innovation. The findings contribute to the global discourse on harmonizing digital asset regulation with diverse ethical and religious frameworks, offering valuable insights for regulators, scholars, and Islamic financial institutions
Cryptocurrencies, particularly Bitcoin and Ethereum, have reshaped global conceptions of money, ownership, and exchange. With the rise of blockchain technology—distributed, immutable digital ledgers—applications have expanded into areas such as smart contracts, asset tokenization, and non-fungible tokens (NFTs). These shifts present pressing challenges to traditional Islamic legal structures, which have historically grounded financial rulings in well-defined principles such as prohibition of riba (intere... In this context, Islamic jurisprudence must critically engage with these technologies—not by rejection or blind acceptance—but through a measured analysis rooted in legal maxims and maqāṣid al-sharīʿah (the higher objectives of Islamic law). This study explores the Islamic legal perspective on cryptocurrencies and blockchain technologies, providing an analytical review of scholarly opinions, regulatory frameworks, and economic realities across Muslim and global contexts.
This study examines how local government policy contributes to the effectiveness of zakat revenue collection, focusing on the case of BAZNAS in Serang Regency, Indonesia. Zakat, an Islamic fiscal obligation, serves not only as an act of worship but also as a mechanism for socio-economic redistribution. Despite its potential, zakat collection in many regions remains suboptimal due to fragmented policies and weak institutional synergy. This research addresses a critical gap in global Islamic finance literature by investigating zakat governance at the subnational level, especially in a decentralized administrative context. Using a qualitative method that includes document analysis and semi-structured interviews with key stakeholders, the study explores how formal regulations, government facilitation, and inter-agency coordination shape institutional performance. The findings reveal that local policies—such as mandatory zakat deductions for civil servants, operational support, and integration of zakat into regional development planning—significantly enhance zakat income and institutional legitimacy. However, challenges such as limited bureaucratic capacity, inconsistent implementation, and fragmented institutional roles hinder optimal performance. The study concludes that effective zakat governance requires not only normative alignment with Islamic values but also robust policy design, administrative professionalism, and participatory mechanisms. By bridging institutional theory and Islamic public finance, this study offers a contextualized model of state–faith institutional synergy that may be applied to other Muslim-majority countries or regions with similar governance dynamics.
Fatima Zohra Benali, Wildan Miftahussurur Miftahussurur, Rijal Ali Santos Santos, Zaenol Hasan
This study examines the application of qiyas (analogical reasoning) in assessing the legality of cryptocurrency within Islamic law, particularly through the fatwas issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI). As cryptocurrency emerges as a significant innovation in the economic sector, the research analyzes classical fiqh texts and draws analogies with paper money to identify essential criteria for cryptocurrency to be considered a legitimate medium of exchange, including being valuable, pure, transferable, and beneficial. The findings indicate that while cryptocurrency lacks official backing, its value is derived from societal trust in blockchain technology. The study emphasizes the necessity for cryptocurrency transactions to comply with Sharia principles, avoiding elements of riba, gharar, and maysir. Additionally, it highlights the importance of collaboration among scholars, academics, and practitioners in Sharia economics to develop responsive fatwas and policies that address technological advancements and societal needs. Furthermore, to provide a broader perspective, examples from other countries, such as Malaysia, Algeria, and Morocco, can be referenced to understand how different Islamic authorities approach the regulation and assessment of cryptocurrency. For instance, Malaysia's Shariah Advisory Council has recognized cryptocurrencies under certain conditions, while Algeria has outright banned their use due to concerns over their volatility and speculative nature. Morocco, on the other hand, has issued warnings about the risks associated with cryptocurrency, despite the growing global interest in digital currencies. By examining these diverse approaches, the research can offer a more comprehensive understanding of how cryptocurrency fits within the frameworks of Islamic finance and law across different contexts. This research contributes to the discourse on integrating modern financial systems with Islamic principles, suggesting that cryptocurrencies can be utilized within Islamic economies if they adhere to Sharia guidelines. Ultimately, the study aims to provide practical guidance for Muslims in conducting economic activities in the digital era while leveraging technological progress to enhance welfare and prosperity.
The decentralization of education has the potential to create gaps in the aspect of education financing, which can ultimately lead to inequality in the quality of education between regions. The implementation of regional autonomy since 2001 has brought significant changes in the governance of the education sector. Therefore, financing is a crucial element in the implementation of education. In the context of regional autonomy, the responsibility for the implementation of education from Kindergarten to Senior High School is handed over to the local government. Thus, the sustainability and quality of education are greatly influenced by the ability of the regions to manage the sector. Unfortunately, the implementation of educational autonomy by local governments has not been fully optimal, one of one of which is due to budget limitations and various other factors. Nevertheless, educational autonomy has a number of positive potentials, including improving managerial efficiency and job satisfaction of educators, producing more contextual and concrete education policies, and optimizing the use of educational resources. In addition, this autonomy allows for more optimal exploration of local potential, the preparation of an education system that is in accordance with local cultural values, and an increase in community participation. Autonomy also contributes to increased accountability, which can overall ensure the quality of education. Other positive effects that can be achieved through educational autonomy include improving the education system at the local level, efficiency in administration and finance, and providing higher quality educational services. This makes educational autonomy a strategic instrument in answering challenges in today's world of education.
The rapid advancement of blockchain technology presents new opportunities and challenges for the Islamic financial system, particularly in ensuring compliance with Shariah principles. As Islamic finance continues to grow, there is a pressing need to explore how digital innovations such as smart contracts can be integrated without violating core religious tenets. This study explores the potential application of smart contracts in Islamic finance, focusing on how blockchain technology can support transactions that comply with Shariah principles. Using a qualitative approach with triangulation methods, the research combines systematic literature review, in-depth interviews, and comparative analysis between smart contract frameworks and classical Shariah contracts such as murabaha, mudarabah, and ijarah. The study examines how smart contracts can enhance transparency, reduce operational costs, and minimize human error while ensuring adherence to Islamic legal and ethical standards. The findings indicate that blockchain-based smart contracts can effectively automate Islamic financial transactions when designed with proper attention to the prohibition of riba (interest) and gharar (uncertainty). The research highlights the need for close collaboration between Shariah scholars and technology developers to ensure compliance. This study suggests that smart contracts hold significant promise for increasing efficiency, trust, and transparency in the Islamic financial ecosystem
Yosua Pepris Karbeka, Umbu Lily Pekuwali, Detji K. E. R. Nuban
The Blockchain Ombudsman of the Republic of Indonesia is an independent state institution established by post-reform legislation as a public service supervisor for decentralized systems. It holds immunity rights, shielding it from arrest, detention, interrogation, prosecution, or litigation. In practice, however, the Blockchain Ombudsman faces lawsuits from the public in court. This undermines legal certainty and disrupts the separation of powers in Indonesia’s digital governance. This study employs normative legal research with statutory, historical, and conceptual approaches. Findings reveal that the Blockchain Ombudsman emerged in Indonesia to protect user rights and address the need for power separation in modern blockchain-based governance. Its immunity rights originate from universal Ombudsman practices codified in law but require tailored regulatory frameworks. The execution of the Blockchain Ombudsman’s functions, duties, and authorities is intrinsically linked to functional immunity. Consequently, it cannot be sued or reported to other enforcement entities (e.g., regulatory agencies or decentralized autonomous organizations). Objections to maladministration audit outcomes may be raised internally via complaint mechanisms or externally by contesting the underlying issue in court.
Ilham Ardhiyansyah, Ahmad Furqon, Mashilal Mashilal
Zakat is a fundamental component of Islamic social finance, intended to reduce inequality and strengthen community welfare. However, traditional zakat systems face recurring issues, including inefficiency, lack of transparency, and low public trust. This study aims to optimize zakat management using Ethereum blockchain technology, particularly the Layer 2 (Base) network, with a focus on its impact on cost efficiency and system transparency. Using a qualitative-descriptive approach, the research designs and simulates a blockchain-based zakat distribution model that incorporates smart contracts for automated fund allocation to eight categories of ashnaf, along with off-chain verification for Sharia compliance. A simulation of USDC 1,000 zakat fund distribution demonstrates that the blockchain system ensures accurate, traceable, and tamper-proof transactions, while reducing transaction costs by over 98% compared to conventional methods. Smart contracts automate the disbursement process, while all transaction records are stored on a public ledger, which supports real-time auditing and enhances institutional accountability. These results demonstrate that the integration of blockchain technology not only improves operational efficiency and transparency but also supports Islamic legal and ethical governance. In conclusion, this model provides a practical and scalable framework for modernizing zakat management with a strong emphasis on cost efficiency, public trust, and Sharia compliance.
Nurul Qosimah Siregar, Nikma Sari Harahap, Anisa Tul Fitri, Hulwati Hulwati · 5 authors
The use of cryptocurrencies as a payment instrument is an interesting social phenomenon to discuss. The use of cryptocurrencies as an official payment instrument is still prohibited by Bank Indonesia, but the use of cryptocurrencies continues to grow in Indonesia. BI limits the use of cryptocurrencies only as assets to be invested, not as legal tender. This research aims to analyze the law of cryptocurrency as a payment instrument from the perspective of economic fiqh. The data analysis technique in this study uses a qualitative analysis method that is descriptive-analytical. The researcher analyzed the suitability of the characteristics of cryptocurrency as a payment instrument with the principles of economic fiqh. A conceptual approach is used to explain the concept of cryptocurrency and a normative-theological approach is used to relate the concept to the provisions of Islamic law. The results of the study show that cryptocurrencies can, in principle, be recognized as objects of legal ownership ( maal mutaqawwam ) in Islam because they have value, can be owned and transferred. Cryptocurrencies can be used as a medium of exchange in Islam on a limited basis, if their use complies with Sharia principles: it is done transparently, free from speculation and usury, and supported by legitimate authorities and systems that guarantee clarity of value and security of transactions. This research emphasizes the importance of developing regulations that are adaptive to digital financial technology, as well as the need to emphasize transparency and avoidance of practices that are contrary to Islamic economic principles. Keywords: Cryptocurrency; Economic Fiqh; Payment Instrument.
Sharia fintech is a digital financial innovation that integrates technology with sharia principles, one of which is through a Peer To Peer (P2P) lending platform. However, in practice, various sharia compliance issues are still found, such as the potential for usury, gharar, and non compliance with contracts. This is due to limited manual supervision and the complexity of digital transactions. This study aims to analyze the potential for implementing smart contract technology to improve sharia compliance on P2P lending platforms. Using a qualitative approach through literature studies, this article examines how smart contract characteristics such as transparency, automation, auditability, and resistance to manipulation can support the implementation of sharia contracts such as murabahah, mudharabah, and musyarakah. The results of the study show that smart contracts enable the automatic implementation of sharia compliant transactions, reject unauthorized processes, and provide an immutable blockchain based monitoring and reporting system. This potential makes it a strategic tool in building a more accountable, efficient, and trusted sharia fintech ecosystem. However, the implementation of this technology still faces challenges, such as limited regulations, the need for multidisciplinary human resources, and low digital sharia literacy. Therefore, collaboration between scholars, regulators, and technology developers is needed to ensure that the implementation of smart contracts is not only technically superior, but also in accordance with the maqashid sharia. This study recommends the development of prototypes and further empirical research as concrete steps for implementation.
Jundullah Rifqi Prasmanto, Anang Ma’ruf, Muhammad Fathurrahman Assidiq, Muhammad Faiz Diyaulhaq
This study examines the status of Bitcoin and its underlying blockchain technology from the perspective of Islamic law. The research utilizes a qualitative library-based method, analyzing primary sources of Islamic jurisprudence alongside recent academic studies. It explores key Shariah principles such as mal mutaqawwam, maysir, gharar, and riba, in assessing Bitcoin's permissibility. The findings reveal that while Bitcoin's volatility, speculation, and lack of intrinsic value raise concerns under Islamic finance, the asset does not inherently involve interest (riba). Furthermore, the research distinguishes between the controversial nature of Bitcoin and the positive potential of blockchain technology, which aligns with the objectives of maqasid al-shariah, particularly in promoting transparency, financial inclusion, and ethical conduct. The study concludes that while Bitcoin may remain contentious, blockchain offers significant opportunities for Shariah-compliant financial innovation when supported by appropriate regulation and ethical oversight.
The advent of cryptocurrency has unleashed a tsunami in the global financial system, and the impact on traditional banking systems, particularly in India, has been nothing short of revolutionary. Effect of cryptocurrency on traditional banking in relation to India(04) Cryptocurrency comprises of non-regulated digital or virtual currency systems that use cryptography as a security process to verify and secure transactions along with the creation of additional units of the currency. Cryptocurrencies are based on the blockchain and are decentralized, serving as an alternative to traditional banking systems due to how it allows for faster, cheaper, and borderless transactions. This threatens traditional banking services, such as remittances, payments and lending. Speculation Points to Continued Growth in the Indian cryptocurrency industry floundered in the face of regulatory uncertainty, but it has still grown exponentially, as tech-savvy people and businesses adopt cryptocurrencies. Within this context, the study analyzes responses of traditional banks, which range from adopting blockchain technology and enhancing digital offerings to address competition from fintech companies. It also examines any regulatory policies implemented by the Reserve Bank of India (RBI) and the repercussions those policies have on the peaceful coexistence of cryptocurrency and traditional banking. The paper seeks to delve into potential collaboration and integrate between cryptos and conventional banking in India via a combination of qualitative and quantitative research methods while underlining the necessity of balanced regulation that encourages innovation, all while upholding financial stability. And the research ends with policy recommendations that would allow India’s banking sector adapt to digital currency as it evolves. Keywords: Cryptocurrency, Traditional Banking, Financial Innovation