Abdulbari Kaje Yamkee, Mohd Hafiz Bin Jamaludin, Hanira Hanafi, Moch. Bukhori Muslim
Bitcoin is the world’s first cryptocurrency, created by Satoshi Nakamoto in 2008. Initially designed as a currency, Bitcoin has increasingly been used as a speculative investment instrument in recent years. The growing popularity of Bitcoin investment among investors has raised questions about its compatibility with the principles of maqasid syariah in general and the concept of ḥifẓ al-māl in particular. This study aims to analyze the concept of ḥifẓ al-māl from the perspective of maqasid syariah in relation to Bitcoin investment. Ḥifẓ al-māl is one of the five essential objectives of maqasid syariah, emphasizing financial security, asset protection, avoidance of excessive risk, fraud and other non-compliant elements. This study adopts a qualitative approach through a literature review to assess the suitability of Bitcoin investment within the framework of ḥifẓ al-māl and maqasid syariah. Data was collected from primary and secondary sources. The data were than analyzed based on the established themes. The findings indicate that Bitcoin investment carries both high profit potential and significant risk. Furthermore, ensuring that Bitcoin investment fully aligns with maqasid syariah, particularly in the context of ḥifẓ al-māl, present considerable challenges due to elements that may lead to both benefit and harm. Contribution: This study makes a significant contribution in legal, economics and social aspects. From a legal perspective, it proposes a comprehensive guideline for Bitcoin investment. Economically, it enhances understanding of Bitcoin’s potential as an alternative investment within the framework of ḥifẓ al-māl. Socially, it promotes awareness of syariah-compliant financial management within community.
This study seeks to offer an in-depth examination of cryptocurrency investments through the lens of Islamic law, with particular emphasis on assessing the Shariah compatibility of widely used digital assets such as Bitcoin and Ethereum. The novelty of this research lies in its systematic exploration of key issues such as the speculative nature, intrinsic value, and potential for financial harm (gharar) associated with cryptocurrencies. This study adopts a qualitative approach, drawing upon primary sources of Islamic jurisprudence namely the Quran, Hadith, and classical scholarly interpretations while also incorporating contemporary fatwas, insights from prominent Islamic finance scholars, and expert interviews to inform the analysis. The results highlight divergent viewpoints on the permissibility of cryptocurrency investments, with some scholars asserting their compliance under specific conditions, while others deem them non-compliant due to risks of speculation and uncertainty. The study concludes by proposing a set of actionable guidelines for Muslim investors, underscoring the significance of grasping the intricacies of Shariah principles in cryptocurrency investments and highlighting the necessity for continuous scholarly engagement in this evolving domain.
Waqf is an Islamic economic instrument with significant potential to promote community welfare, yet it continues to face challenges related to transparency, asset certification, and public engagement. The advancement of blockchain technology particularly the use of Non-Fungible Tokens (NFTs) presents an innovative opportunity for the digitalization of waqf, especially as a means of creating unique, transparent, and verifiable asset certifications. This study employs a qualitative approach through a literature review to analyze the potential and challenges of utilizing NFTs within the framework of sharia-compliant digital waqf. The findings indicate that NFTs hold great promise in enhancing efficiency, expanding public participation, and promoting digitally-driven productive waqf models. However, several critical issues remain, including legal uncertainty, the risk of gharar (ambiguity), value volatility, and the lack of supporting infrastructure and digital literacy. This study recommends strengthening regulatory frameworks, developing adaptive fiqh guidelines, and increasing public education to support the implementation of NFTs as a waqf instrument aligned with maqāṣid al-sharī‘ah and capable of delivering broad benefits to the Muslim community.
Muhammad Izzul Syahmi Zulkepli, Suffian Haqiem Nor Azelan, Nur Bakri Abdul Hamid, Hazrul Hizam Karim · 5 authors
A smart contract is a script that encodes and executes the terms of a contract or transaction on a blockchain platform. This technology offers a practical mechanism for delivering Islamic banking products. Smart contracts can be utilized for Islamic home financing, specifically to implement the diminishing partnership (musharakah mutanaqisah) structure. This arrangement has seen a decline in use, largely due to the rise of tawarruq contracts which benefit from more developed systems and facilities. Reassessing and redeploying the diminishing partnership model via smart contracts could reduce the industry’s heavy reliance on tawarruq in Islamic banking operations. Accordingly, this study evaluates the potential of smart contract technology to execute diminishing partnership agreements, especially within the context of housing finance offerings. We adopt a qualitative approach to achieve this aim, drawing on thematic analysis of prior studies and synthesizing findings through narrative methods. Our results indicate that smart contracts can serve as an effective operational mechanism for diminishing partnership-based home financing, thanks to automated workflows, enhanced transaction transparency, and improved risk management. However, these advantages can only be fully realized if the technological, operational, and Sharia-related risks are properly identified and controlled.
Smart contracts are computer codes that represent contract terms and are designed to run on a blockchain platform, automatically enforced upon receiving predetermined inputs. This technological innovation, a key component of the Fourth Industrial Revolution, provides an advanced and innovative approach to executing contract terms. Incorporating this technology into Shariah-compliant contracts within Islamic Banks (IBs) holds the potential to reduce Shariah non-compliance risk (SNC) and enhance operational transparency, ensuring compatibility with contemporary technological applications. In particular, blockchain-based smart contracts have the potential to be integrated into the operations of IBs’ products that are based on tawarruq contracts. This study aims to investigate the potential application of blockchain-based smart contract technology in tawarruq contract operations within IBs and to suggest directions for future research. This study adopted a qualitative approach, drawing on relevant literature. The findings indicated that blockchain-based smart contracts can address Shariah Non-Compliance (SNC) issues in IB’s tawarruq operations while enhancing transaction transparency. This paper discussed the Shariah and operational challenges associated with blockchain technology and posits that blockchain-based smart contracts can improve the practices of tawarruq contracts within Islamic Banks. This paper offers insights for IB entities and regulatory authorities to evaluate the potential and impact of blockchain-based smart contracts within their operations and the broader financial system.
في ظل التنامي الرهيب لتكنولوجيا المعلومات والذكاء الاصطناعي، ظهر مفهوم التمويل اللامركزي بوصفه نظامًا ماليا يعتمد على التكنولوجيا اللامركزية المبنية على تقنية سلسلة الكتل البلوك تشين) لتمكين الأفراد والمؤسسات من إجراء عمليات تمويل دون الحاجة إلى جهة وسيطة مركزية كما هو معهود، وعلى إثرها تولدت منصات التمويل اللامركزي التي تتيح الإنجاز والسرعة في مجال الخدمات المالية، حيث يمكن للأفراد والشركات التعامل بشكل مباشر وفعال دون تدخلات من وسطاء مما يقلل من التكاليف ويسرع من إجراءات التمويل بصيغ مختلفة. وفي محاولة لتجلية الأحكام الشرعية الفقهية المتعلقة بالتمويل اللامركزي ومنصاته جاء هذا البحث ليكشف مكنونات الصناعة المالية الرقمية مستعينا بالمنهج الوصفي التحليلي وذلك بتوصيف المكونات وتفكيك المركبات وتكييفها حسب الفروع وردها إلى أصولها، للخلوص إلى حكم عام يضبط ما استجد من المعاملات، مع تحليل ماهيتها وبيان خصائصها لإيجاد قواعد ضابطة لها. وقد استعرض الباحث أقوال الفقهاء المعاصرين والمجامع الفقهية مع مناقشة أدلة كل فريق انتهاء بترجيح يثري وحكم يُرشد، وقد خلص البحث إلى جواز التعامل بمنصات التمويل اللامركزي وفق شروط وضوابط، جلباً للمصلحة ودرءا للمفسدة، برهاناً على قوة القواعد العامة للشريعة ومقاصدها، ومدى صلاحيتها ومسايرتها لكل وقت ومكان. وقد استعرض الباحث بعض المنصات الرقمية للتمويل اللامركزي، حاولت تجسيد ما ذهبوا إليه من جواز التعامل بالتمويل اللامركزي، وعليه تم استحداث آليات للتمويل وتشريع ذلك من خلال ملفات التعريف وبيان الماهية، ثم التأصيل الشرعي الذي يعطي المنصات شرعية للتعامل بها. وأوصى الباحث بأن المستجدات المالية الرقمية بحاجة إلى مزيد بحث وتنقيب وتنقيح، وذلك راجع للتسارع الهائل فيها وفي تحديثاتها طلباً لاكتمالها وتحسيناً لمنتجاتها.
Cryptocurrencies and blockchain technology are increasingly being integrated into traditional finance, providing innovative solutions for financing environmental projects and sustainable development. Their application enables transparency, decentralization, and efficiency in financial flows, facilitating investments in green initiatives and promoting sustainable business models. Asset tokenization and smart contracts enable direct financing of renewable energy and environmental protection projects, while decentralized finance provides easier access to capital for green projects. Additionally, the shift from energy-intensive "proof-of-work" systems to more sustainable "proof-of-stake" models significantly reduces the ecological footprint of blockchain networks. Blockchain allows transparent tracking of carbon dioxide emissions and facilitates carbon credit trading, encouraging companies to adopt more responsible business practices. By using cryptocurrencies in ESG investments and green bonds, traditional finance can more effectively support sustainable projects and reduce global ecological risks. Although challenges such as regulatory barriers, market volatility, and the need for greater energy efficiency exist, the synergy between cryptocurrencies and traditional finance can accelerate the green transition, making the global economy more sustainable, resilient, and environmentally responsible.
This study assesses public trust in Bahrain regarding the potential of artificial intelligence (AI) to mitigate the use of cryptocurrencies in financial fraud and terrorist financing. The increasing risks associated with illicit financial activities have been exacerbated by the rapid expansion of e-commerce linked to cryptocurrencies, leading to vulnerabilities in financial technology systems. AI presents a viable solution for detecting, analyzing, and assessing the risks associated with cryptocurrency transactions, strengthening confidence in financial institutions’ regulatory measures. Evaluating public trust is crucial to understanding societal awareness of AI’s role in monitoring and regulating virtual financial transactions to prevent fraud. This research employs a quantitative approach to examine the key factors that enhance confidence in AI-driven auditing and oversight of cryptocurrency transfers. The findings indicate that, while AI offers significant advantages in combating financial crime, certain challenges remain. These include technological complexities, difficulties in accurately identifying users, and weaknesses in electronic financial and legal regulatory frameworks. Such challenges may undermine public trust in AI’s effectiveness in financial oversight. Addressing these concerns is essential to ensuring the successful integration of AI in financial regulation and reinforcing its role in enhancing security and transparency in cryptocurrency transactions.
This article critically evaluates the Sharia legitimacy of Bitcoin by applying Usul al-Fiqh—the foundational principles of Islamic jurisprudence—to several influential fatwas that prohibit it. Despite stemming from sincere concerns, many such fatwas rely on incomplete factual understanding, unverified analogies, or secondary policy considerations rather than explicit textual or consensus-based evidence. Consequently, these rulings risk conflating genuine harms (fraud, volatility, illicit use) with Bitcoin’s inherent characteristics, which classical fiqh frameworks may otherwise recognize as permissible if carefully regulated. Drawing on examples of fatwas that deem Bitcoin permissible, the study demonstrates how thorough subject comprehension and methodologically robust legal derivation (ijtihad) often yield more nuanced conclusions. It further underscores that well-established Qur’anic and Prophetic principles— such as avoiding excessive uncertainty (gharar) and upholding wealth preservation—need not preclude thoughtful, evidence-based engagement with emerging financial technologies. Concluding that clear methodological grounding and accurate technology assessment are indispensable, the paper advocates ongoing dialogue between Sharia scholars, economists, and technical experts to ensure balanced rulings that protect Muslims’ interests while fostering innovation.
Open access
Terrorism, Counterterrorism, and Political Violence
This study aims to critically examine the compatibility of Bitcoin and blockchain technology with Islamic economic and legal principles within the context of a rapidly evolving digital financial system. Employing a literature review method based on the PRISMA approach, this research analyzes five authoritative classical Islamic jurisprudence texts alongside 40 scholarly articles from credible academic sources. The primary focus lies in evaluating how these emerging technologies correspond with key Islamic financial values, particularly the prohibitions of riba (interest), gharar (excessive uncertainty), and maysir (speculation/gambling), while also exploring their potential for innovation in building a Shariah-compliant financial infrastructure. The findings demonstrate that while Bitcoin, due to its high volatility and speculative nature, poses significant concerns under Shariah principles mainly due to its proximity to elements of maysir and gharar blockchain technology itself offers considerable promise. As a decentralized and transparent ledger system, blockchain can enhance justice (‘adl), trust (amanah), and efficiency in Islamic financial transactions. It supports the reduction of transaction costs, improves transparency, and eliminates reliance on intermediaries aligning with core objectives of Islamic economic ethics. Furthermore, blockchain technology provides a foundation for innovative financial instruments that uphold Shariah compliance, such as asset-backed stablecoins, automated smart contracts for contracts like murabahah or mudarabah, and real-time Shariah audits. The study finds increasing institutional support across Southeast Asia and the Middle East, where Islamic finance authorities, governments, and fintech developers are actively working to embed blockchain into compliant financial ecosystems. In conclusion, although Bitcoin's speculative characteristics challenge its Shariah compliance, blockchain technology opens significant opportunities to innovate and strengthen Islamic digital finance. The realization of this potential depends on sustained collaboration among Shariah scholars, technologists, regulators, and financial institutions to ensure all developments are guided by the objectives of maqasid al-shariah. This research contributes to the ongoing discourse on how Islamic values can shape the future of ethical and inclusive financial technologies.
The quest for wealth has been a constant in human civilization. Ancient Indian mythology, through symbols such as Kamadhenu — the wish-fulfilling divine cow — and philosophical ideas like Soul Contracts, explored the dynamics of material abundance and spiritual growth. In modern times, the emergence of decentralized finance (DeFi) and centralized finance (CeFi) systems mirrors these ancient philosophies in unexpected ways. This paper explores the intersections between ancient and modern ideas about wealth, drawing connections between Kamadhenu and DeFi (as models of self-generating, permissionless abundance), and between Soul Contracts and CeFi (as models involving agreements, authority, and structured dependence). Through detailed narrative analysis, philosophical interpretation, and case studies in finance, the paper argues that understanding ancient wisdom can provide meaningful insights for navigating the complex economic realities of the 21st century.
Blockchain technology, the bedrock innovation in the digital economy, is steadily reengineering the operational logic of the traditional financial system. Harnessing its core attributes of decentralization, immutability, and transparency, it is making profound inroads. This paper undertakes an all-encompassing and systematic review of relevant literature from both domestic and international sources. It particularly focuses on the empowerment routes by which blockchain technology can fuel the reform of the traditional financial setup, thus furnishing theoretical support and practical blueprints for financial systemic revamp. Blockchain technology yields numerous advantages. It significantly boosts payment efficiency, slashes costs, and vigorously promotes financial inclusion. Moreover, it augments regulatory transparency and alleviates information asymmetry. However, several hurdles remain, such as scalability glitches, security threats, and regulatory compatibility issues. This research not only enriches the FinTech knowledge pool but also steers financial institutions in their digital transformation endeavors, enabling them to render more efficient and inclusive services. Going forward, future work should concentrate on technological innovation and regulatory adaptation to fully realize the potential of blockchain in the financial sector.
Ishak Ramli, Mohamad Noorman Masrek, Mohd Daud Abdul Rahim, Thuraiya Mohd · 10 authors
The development of blockchain technology across the globe has seen to be vast, including those related to visual arts. In Islam, anything new: especially those that never existed before, needs to be, obligatory discussed from the Islamic Shariah perspective. Therefore, the vast development of blockchain technology relating to non-fungible token (NFT) towards marketing visual art needs assessment from the Islamic Shariah perspective as there has not been any empirical studies carried out towards it. This paper intends to discuss a need assessment analyses regarding marketing visual art through the NFT platform blockchain technology from the Islamic Shariah perspective in Malaysia. Using the systematic literature review technique, researchers have discussed briefly regarding the development of visual arts, NFT and its trend, and reviewing Islamic perspectives on NFT. As a result, it is necessary for the Islamic Council of Malaysia to explain in detail the marketing of visual arts through NFT. A proper paperwork is crucial to give an overview on the practices regarding NFT that are 1) crypto currency; 2) artwork visual appearance; 3) copyright and consent issue; 4) pricing and value; and 5) royalty and blockchain record - to market of visual arts for Islamic Shariah assessment; in ensuring the muamalat activities amongst Muslims are centred on the faith of Islam.
Mustafa Raza Rabbani, Sabia Tabassum, Miklesh Prasad Yadav, Umar Nawaz Kayani
Purpose This study aims to explore and analyze time-varying linkages of Islamic equity indices with the Sukuk (Islamic bond) market index, Halal cryptocurrency and Shariah-compliant exchange traded fund (ETF). Design/methodology/approach To study the dynamic connectedness of constituent series, the daily adjusted closing price from December 31, 2019, to September 11, 2023, has been used. This period is taken considering the unprecedented COVID-19 and Russia–Ukraine tussle under study. Standard GARCH and E-GARCH models are used to forecast symmetrical and asymmetrical volatility. Further, dynamic conditional correlation (DCC)-GARCH and Diebold and Yilmaz (2012) connectedness models demystify the spillover among examined assets. Findings There is no spillover from Dow Jones Islamic Market (DJIM) to Taddawul Sukuk and Bond Market Index (TSBI) and X8X in the short run, while there is spillover in the long run. However, DJIM and HLALETF exhibit volatility spillover in long run and short run as well. Further, Diebold and Yilmaz (2012) reveals that DJIM is the highest receiver, and TSBI is the most diminutive receiver of the shock. On the other hand, HLAL-ETF is the highest transmitter, and TSBI stands out as the lowest transmitter to the network connection. Originality/value Following an extant literature review, and to their understanding, it’s a novel study that unfolds dynamic linkages among selected markets during two major global crises.
Cryptocurrency has revolutionized financial systems by introducing a decentralized, borderless, and efficient alternative to traditional banking. Unlike conventional financial institutions, which rely on intermediaries, cryptocurrencies utilize blockchain technology to enable peer-to-peer transactions with enhanced security and transparency. This study explores how cryptocurrency adoption is reshaping the traditional banking landscape, focusing on transaction efficiency, cost implications, regulatory challenges, financial inclusion, and cybersecurity risks. Using an extensive review of financial reports, scholarly articles, and regulatory analyses, this research highlights the potential opportunities and threats posed by cryptocurrency. Findings indicate that while cryptocurrencies democratize access to financial services and reduce transactional inefficiencies, they also raise concerns regarding regulatory oversight, market volatility, and security threats. The study concludes by recommending strategic blockchain integration into banking frameworks to promote innovation while ensuring regulatory compliance and financial stability. Keywords: Cryptocurrency, Blockchain, Traditional Banking, Financial Inclusion, Digital Transactions, Decentralization, Financial Regulation, Cybersecurity
تهدف الدراسةُ إلى بيان رصد دور الفتاوى الإلكترونية الاقتصادية الصادرة عن الجهات المتعددة مثل دور الإفتاء، والمجامع الفقهية، والعلماء في مجال الفقه الإسلامي في توجيه الاقتصاد الرقمي، لتعزيز التنمية المستدامة، من خلال نموذج العملة الرقمية المشفرة البتكوين (BITCOIN)، وذلك بتحليل تلك الفتاوى ومقارنتها مقارنة فقهية، وتقديم رؤية فقهية متوازنة، وقد احتوت الدراسة على أربعة مباحث، خصصت الأول منها للفتاوى الإلكترونية والتنمية المستدامة، وتناولت فيه بيان حقيقة الفتاوى الإلكترونية، وأهميتها، وأثرها على الجانب الاقتصادي، والتنمية المستدامة، وأبعادها، مع ذكر نماذج من الفتاوى الإلكترونية وأثرها على التنمية المستدامة، في محاورها الاقتصادية والاجتماعية والبيئية، وجاء المبحث الثاني لبيان حقيقة العملة الافتراضية البتكوين (BITCOIN)، ونشأتها، وتطورها، ومزاياها، والتكييف الفقهي للعملة الرقمية البتكوين وحكمها الشرعي، والمبحث الثالث في الإشكالات الشرعية الواردة على التعامل بالعملات الرقمية، والمبحث الرابع جاء في أثر العملات الرقمية غير القانونية على التنمية المستدامة، وتناولت فيه المخاطر الاقتصادية والقانونية والتقنية للعملات الرقمية غير القانونية، ثم ذيلت البحث بأهم النتائج والتوصيات. The study aims to demonstrate the role of electronic economic fatwas issued by various bodies such as fatwa houses, jurisprudential assemblies, and scholars in the field of Islamic jurisprudence in guiding the digital economy to enhance sustainable development, through the model of the encrypted digital currency Bitcoin (BITCOIN), by analyzing and comparing these fatwas in a jurisprudential comparison, and presenting a balanced jurisprudential vision. The study included four chapters, the first of which was devoted to electronic fatwas and sustainable development, and dealt with explaining the reality of electronic fatwas, their importance, and their impact on the economic aspect, sustainable development, and their dimensions, with mentioning examples of electronic fatwas and their impact on sustainable development, in its economic, social, and environmental aspects. The second chapter came to demonstrate the reality of the virtual currency Bitcoin (BITCOIN), its origin, development, and advantages, and the jurisprudential adaptation of the digital currency Bitcoin and its legal ruling. The third chapter dealt with the legal problems arising from dealing with digital currencies. The fourth chapter dealt with the impact of illegal digital currencies on sustainable development, and dealt with the economic, legal, and technical risks of illegal digital currencies. Then it concluded. Research with the most important results and recommendations.
Islamic finance has evolved to address various adverse effects associated with capitalism and to establish a distinctive economic framework. However, a review of its nearly 50-year history reveals that Islamic finance was not developed solely from Islamic doctrine. Instead, it has often engaged with capitalism by selectively adopting capitalist institutions, functions, and products to facilitate its growth. This study examines the evolution of Islamic finance within the context of its interaction with capitalism, particularly through the development of Islamic financial products. Although Islamic finance has experienced significant growth in the 21st century, its pursuit of expansion has occasionally resulted in a loss of originality, leading to criticism for its assimilation into capitalist structures. In response to the criticism, Islamic finance is redefining its identity by adopting new practices, especially considering the emerging post-capitalist trends and the evolving dynamics of global capitalism in the early 21st century. One of the pioneering practices is to collaborate with emerging global financial practices driven by FinTech. The collaboration of Islamic finance with FinTech can be seen as a return to its foundational ideals of decentralization and traceability. However, it goes beyond mere reclamation. By collaborating with FinTech to develop an alternative financial system, Islamic finance has transformed from a mechanism for socioeconomic development based on Islamic principles into a global force seeking a better future for all. The knowledge produced by Islamic finance has thus become a universal intellectual asset, no longer confined to the Muslim community. This flexibility and universality of Islamic finance are its defining characteristics. As the global future remains uncertain, Islamic finance will likely endure by leveraging its flexibility and universality. In this context, Islamic finance may take an essential first step towards realizing a post-capitalist society.
This study investigates the impact of blockchain technology on financial data management practices in Jordanian organizations. The research aims to understand how blockchain influences key aspects such as efficiency, security, transparency, auditability, data integrity, fraud reduction, and cost efficiency. A quantitative approach was employed, using Principal Component Analysis (PCA) and Factor Analysis to extract and analyze significant components from the dataset. The PCA results revealed that the first seven components explained approximately 89.63% of the total variance, with the strongest loadings on efficiency (14.56%), security (13.59%), and transparency (13.10%). Factor analysis further reinforced these findings, highlighting the positive relationship between blockchain adoption and improvements in these key areas. Despite the benefits, implementation challenges emerged as significant moderating factors, impacting the extent to which organizations can fully leverage blockchain technology. The study concludes that blockchain has the potential to transform financial data management, particularly in improving efficiency, security, and transparency. However, organizations must address implementation challenges to fully realize these benefits.
Purpose This study aims to investigate the intentions of Muslim cryptocurrency (CC) holders to fulfil their zakat obligations on digital assets, exploring the unique motivations and barriers within this emerging financial landscape. Design/methodology/approach The research uses a quantitative approach and a cross-sectional research design through online surveys, using purposive sampling to gather data from Muslim CC holders. The integrated model, known as the theory of planned behaviour and social cognitive theory (TPB-SCT) model, is used to comprehensively analyse the key factors influencing intentions to pay zakat on cryptocurrencies (CCs). Findings The study reveals that attitude towards zakat on CCs and perceived behavioural control regarding zakat on CCs have a significant and positive effect on the intention to pay. In contrast, subjective norms show no significant influence. CCs-related financial risk exerts a negative impact on intention. Moreover, CCs-related zakat knowledge and adherence to Shariah compliance are strongly associated with intention. These findings provide insights into the intricate dynamics of religious compliance within the evolving realm of digital assets. Practical implications Outcomes offer profound indications to stakeholders, including financial institutions, zakat agencies, policymakers and the community, on how to integrate zakat into this new and rapidly evolving financial paradigm like CC. Originality/value A pioneering effort was made in this study by exploring the intentions of Muslim CC holders to fulfil zakat obligations, bridging a significant gap in the existing literature. Developing and validating an integrated model of TPB-SCT in the realm of zakat on CC enriches the literature with a novel theoretical framework.
الأهداف: يهدف البحث لبيان ماهية الرموز غير القابلة للاستبدال (NFTs)، وتكييفها الفقهي وحكم التعامل بها، وشروط التوثيق من خلالها، كما يهدف إلى توضيح حقيقة (NFTs)، وآلية عملها، ونشأتها، وحكم التعامل بها، وتم اختيار الموضوع نظرا لحداثته، والحاجة الملحة لوضعها في الإطار الفقهي المناسب، وإثراء المكتبة الإسلامية الفقهية على وجه التحديد، بمواضيع شكلت نقلة نوعية في عالم التكنولوجيا، مما يعني مواكبة كل ما يستجد. المنهجية: اعتمد البحث المنهج الوصفي الشارح للنصوص المتعلقة بـ NFTs، والمنهج الاستقرائي باستقراء عمل الرموز تقنيا للتوصل للتعريف الأقرب لطبيعتها، والمنهج التحليلي لتحليل المفاهيم الواردة والآراء المتعلقة بـها، ومناقشتها، وإلحاقها بأقرب التكييفات الفقهية الملائمة. النتائج: إن التكييف الفقهي الملائم لطبيعة عمل هذه الرموز، هو تخريجها على دفتر البياع والصراف، وشريجة البقال، حيث كانت وسائل مناسبة لحفظ الحقوق بحسب ما تعارف عليه أهل ذلك الزمان، وكذا هذه الرموز، فقد تعورف على كونها وسيلة لتوثيق الحقوق في العالم الرقمي، خاصة أنها قد استوفت الشروط الواجب توافرها في التوثيق بالكتابة، من كونها مرسومة ومستبينة، وجازمة، مع مراعاة مجلس العقد، وهي متناغمة كذلك مع الشروط التي أقرتها منظمة التجارة الإلكترونية في العقود الإلكترونية، من الشفافية والاستمرارية وعدم القابلية للتغيير والتبديل. الخلاصة: أن الـ NFTs هي عبارة عن نوع الشبكات اللامركزية تستخدم لإثبات الحقوق والملكيات من خلالها، وتتم عبر شبكات البلوكتشين الإيثيروم- على وجه التحديد، حيث تتوافر فيها الشروط الواجب توافرها في التوثيق بالكتابة برموز خاصة، تتناسب مع معطيات العصر الرقمية، وتوصي الباحثة بمزيد من البحوث على كل ما يستجد حول تلك الرموز لاستيضاح ملابساتها في جميع جوانب استعمالاتها، كما وتوصي بالاستفادة العملية من تجارب الدول في استخدامها، مما يساعد في اكتشاف الثغرات وسدها.
This study aims to see the development of research on the topic of "Islamic Finance & Cryptocurrency" and research plans that can be carried out based on journals published on the theme. This research uses a qualitative method with a bibliometric analysis approach. The data used is secondary data with the theme "Islamic Finance & Cryptocurrency" which comes from the Scopus database with a total of 40 journal articles. Then, the data is processed and analyzed using the R-Biblioshiny and VosViewer applications with the aim of knowing the bibliometric map of "Islamic Finance & Cryptocurrency" research development in the world. The results of the study found that there are 4 clusters with the most used words are cryptocurrencey, islamic finance, blockchain technology, money, bitcoin, fintech, digital currency, and islamic crypto assets. Then, the research path topics related to Islamic Finance & Cryptocurrency are (1)Blockchain Adoption in Islamic Finance, (2)Digital Currency Transactions in Islam, (3)Potential and Challenges of Islamic Crypto, and (4)Islamic Law Implications on Cryptocurrency.
Abdourahmane Diallo, Akhtarzaite Binti Hj. Abdul Aziz
This article examines whether zakat is applicable to cryptocurrencies via a study of the fatwa genre on this topic. Fatwas from seven legal specialists in the Muslim world will be examined. These juristic opinions range from considering cryptocurrencies to be permissible to those that consider it prohibited. However, across this spectrum these authorities argue for zakat application to cryptocurrencies. The analysis will isolate and identify the relevant proof texts and principles relied upon. It will be shown that a unifying theme across the fatwa genre is of how thamaniyya is vital in linking cryptocurrencies to zakat-applicability. The study concludes that Islamic Finance successfully contains a theoretic concept, namely thamaniyya, that can help Muslim scholarship engage with advancements in cryptocurrencies regardless of future technological innovations. This study is novel for focusing on fatwa analysis through a theoretical orientation. This article sheds light on how contemporary fatwas are used in the field of Islamic Finance to negotiate between the jurisprudential tradition and cutting-edge developments in cryptocurrencies. The study is limited in not considering socio-political factors in the analysis. It is hoped the results of this study can highlight how disparate legal opinions in Islamic Finance actually share common ground.
Mosharrof Hosen, Hassanudin Mohd Thas Thaker, Mohammad Nazim Uddin, Abdul Qoyum · 5 authors
Purpose Cryptocurrencies, which have been popular since 2009, raise concerns among investors, researchers and professionals. Amid global economic, financial and health crises, uncertainty has surged, leading investors to seek risk reduction and portfolio diversification. While some critique conventional fiat-based cryptocurrencies, others propose asset-backed alternatives. However, the impact of Shari’ah law-based cryptocurrencies on equity market returns remains largely unexplored in existing literature. This study aims to investigate the lead/lag relationship of selected Islamic and conventional cryptocurrencies from ASEAN and global perspectives. Design/methodology/approach The authors collected daily data of Bitcoin, Ethereum, X8X (Islamic cryptocurrency), Cardano (Islamic cryptocurrency), S&P500, Volatility Index, Economic Policy uncertainty and FTSE Asean Index (from the 4th of November 2019 to the 1st of July 2022) to reveal empirical results through Continuous Wavelet Transform and Correlation Heatmap with Dendrogram. Findings The findings indicate that Bitcoin offers a diversification opportunity for FTSE ASEAN investors for the long-term horizon while S&P500 investors will benefit from short-term investment. On the other hand, Ethereum provides better investment opportunities for both indices in the short run compared to long run. Cardano and X8X offer better investment opportunities in the long run for S&P500 and FTSE ASEAN investors. Interestingly, to check the robustness, the authors used correlation Heatmap based on Dendrogram which provided almost similar results. Originality/value This study contributes fresh insights to the existing literature concerning cryptocurrency due to the inconclusive findings of past studies, investors are curious to know the impact of cryptocurrency on stock market return from a global perspective which is extensively overlooked, and whether there is any difference between Islamic and conventional cryptocurrency. Therefore, by investigating the abovementioned timely demand issue, this study substantially contributes to the body of cryptocurrency literature.