Decentralized Finance (DeFi) adalah inovasi keuangan yang memanfaatkan teknologi blockchain untuk meningkatkan inklusi keuangan, terutama di negara berkembang. Dengan mengurangi kebutuhan akan perantara tradisional seperti bank, DeFi menawarkan layanan keuangan yang lebih mudah diakses, seperti pinjaman, tabungan, dan asuransi. Penelitian ini mengeksplorasi peran DeFi dalam meningkatkan inklusi keuangan dengan mengidentifikasi manfaat, tantangan, dan aplikasinya di dunia nyata. Melalui studi literatur, penelitian ini menganalisis berbagai makalah akademik, laporan, dan studi kasus untuk memahami dampak potensial DeFi terhadap populasi yang kurang terlayani. Hasilnya menunjukkan bahwa DeFi dapat menurunkan biaya transaksi, menyediakan layanan keuangan bagi mereka yang tidak memiliki rekening bank, dan mengatasi hambatan geografis. Namun, teknologi ini menghadapi tantangan regulasi, infrastruktur, dan keamanan yang dapat membatasi adopsi yang lebih luas. Meski begitu, DeFi memiliki potensi untuk mentransformasi sistem keuangan di negara berkembang dan menciptakan lingkungan keuangan yang lebih inklusif.
Objective: The study aims to explore the integration of artificial intelligence (AI) and blockchain technology into the halal certification process, focusing on improving accuracy, transparency, and efficiency. It evaluates how these technologies can enhance the halal certification system in Indonesia, mainly through the SiHalal platform developed by the Halal Product Assurance Agency (BPJPH). Research Design & Methods: This study uses a qualitative approach, reviewing the literature and analyzing the implementation of AI and blockchain technologies in halal certification in Indonesia through case studies and interviews with key stakeholders to assess the effectiveness and potential impact of integrating these technologies. Findings: The study found that AI and blockchain improve efficiency, transparency, and security in the halal certification process. AI automates error detection and improves accuracy, while blockchain prevents fraud through immutable records. The SiHalal platform successfully integrates the two to simplify the process and increase public trust and user satisfaction. Implications & Recommendations: The study recommends the expansion of the SiHalal platform and further development of AI and blockchain integration to improve scalability and security, policy support for technology infrastructure and training of halal auditors, and adoption of SiHalal by halal businesses to improve efficiency and transparency, with suggestions for technology developers to continue innovating in addressing scalability and interoperability challenges. Contribution & Value Added: This study contributes to the literature on modernizing halal certification systems by showing how integrating AI and blockchain can revolutionize the process. It also provides insights into how technology increases trust, reduces fraud, and enables regulation, positioning Indonesia as a global halal market leader.
Ahmad Al Izham Izadin, Rosylin Mohd Yusof, Ahmad Rizal Mazlan
Purpose This study aims to examine the integration of Maqasid Shariah principles in evaluating stablecoins and traditional cryptocurrencies within Islamic investment portfolios. The focus is on enhancing returns and reducing risk, providing a Shariah-compliant framework for Islamic investors. Design/methodology/approach This study uses quantile regression and Monte Carlo simulation to analyse the diversification benefits of stablecoins (Tether [USDT] and Tether Gold [XAUT]) and traditional cryptocurrencies (Bitcoin [BTC]) across different Islamic indices by market capitalisation size from 31 December 2020 to 1 July 2024. Findings BTC increases returns but with higher volatility, which may conflict with the principles of Islamic finance. However, when viewed from a portfolio perspective, pairing BTC with stablecoins like USDT and XAUT can provide stability and risk mitigation. This strategy aligns better with Maqasid Shariah by minimising excessive uncertainty (Gharar) and offering tangible asset backing. These strategies are particularly relevant to large-cap indices. However, the increased risk in Islamic Mid and Islamic Small portfolios suggests that the diversification benefits are less pronounced for these indices. Practical implications The results offer practical insights for investors, portfolio managers, Shariah advisors and policymakers in asset allocation and risk management. Incorporating stablecoins and cryptocurrencies can optimise risk-adjusted returns in Islamic portfolios. Originality/value To the best of the authors knowledge, this study is the first to integrate Maqasid Shariah principles in the evaluation of stablecoins and traditional cryptocurrencies, extending the literature on Islamic finance and digital assets. This research offers empirical evidence on the performance and compliance of these assets within Islamic portfolios, providing a comprehensive framework for Shariah-compliant investment strategies.
This article presents a comprehensive investigation of tokenized Sukuk (Islamic bonds), demonstrating that blockchain technology and smart contracts have significantly positively impacted Islamic finance. Our findings discuss smart securities globally, key Sharia-related jurisprudential matters, international cases of blockchain-based or smart Sukuk implementations, examining how each case addresses critical issues in conventional Islamic financing and interview analysis. Background: Exploration of the current role of blockchain implementation in Islamic finance. Objectives: The primary objective of this article is to examine how the use of smart contracts, particularly smart Sukuk, has enhanced Islamic finance. Methods/Approach: This article employs a descriptive analytical method to discuss how smart contracts improve Islamic finance through the issuance of smart Sukuk. We utilized secondary data collected from existing literature on the evolving field of smart Sukuk, including scientific papers, professional reports, and company websites. Additionally, we conducted interviews with the CEOs of two firms, Blossom Finance and Finterra, which have integrated smart contracts into Islamic finance. Eventually qualitative analysis techniques employed by using Atlas.ti software and generate a word cloud to provide a concise overview of interviewees’ primary concerns and interests. Results: Our results are presented in four sections. First, we provide an overview of the implementation of smart securities worldwide. Next, we discuss key jurisprudential matters regarding the introduction of blockchain and smart contracts in Islamic fintech. Besides, we offer a comprehensive review of cases where blockchain and smart Sukuk have been implemented in Islamic finance, highlighting the problems addressed and the enhancements made in each case. Finally, we analyze the visual representation derived from interviews with ATLAS.ti software in the form of a word cloud. Conclusions: This article investigates how international, real-world, and innovative examples of blockchain and smart contract implementations have improved and enhanced Islamic financing processes. Overall, the advantages of using blockchain and smart Sukuk in these examples include streamlining Islamic financing processes, facilitating social financing, reducing poverty, enhancing Sukuk issuance by the banking sector, and enabling pre-purchasing and easier trading of Sukuk in secondary markets. These promising examples illustrate the significant potential of this innovative approach, which can benefit researchers and practitioners in Islamic finance. Ultimately the interviews highlighted the critical role of blockchain reinforcing the findings from the case studies.
Innovation in Islamic finance has a close linkage with the new technology. The blockchain technology carries unlimited opportunities for Islamic finance to enable it to meet the Maqāṣid al Sharī῾ah. However, this aspect is not visible in the literature due to the tendency to connect blockchain with the cryptocurrencies. This study combined an insightful review of Maqāṣid al Sharī῾ah and ḥifẓ al māl along with technical analysis of blockchain to cater to the Islamic finance ethical innovation. This was a qualitative analytical research paper. It addressed the questions related to integrating the theories of Maqāṣid Al Sharī῾ah and Ḥifẓ al māl with the blockchain. The result was a futuristic vision for innovation in Islamic finance with the theme of preserving wealth using a combination of the salient features of blockchain technology and characteristics of Ibn ‘Ashur’s theory of ḥifẓ al māl for wealth and money. The study found that it is possible to create a matrix with the collaboration between the ḥifẓ al māl objectives, namely wealth circulation, justice, ownership protection, creating easiness, robustness and transparency, and the technical characteristics of blockchain, namely decentralization, immutability, transparency, and cryptographic hashing. Together, this approach has the potential for producing ethical, secure, and innovative Islamic finance solutions. This study falls under the contemporary literature that discusses Maqāṣid al Sharī῾ah and Ibn ‘Ashur’s theory of ḥifẓ al māl beyond its theoretical nature in combination with blockchain technology to cater to the growing requirements of innovation in Islamic finance as a part of Maqāṣid al Sharī῾ah’s sustainable ecosystem.
This paper provides a brief overview of the ongoing financial revolution, which extends beyond the emergence of cryptocurrencies as a digital medium of exchange. At its core, this revolution is driven by a paradigm shift rooted in the technological advancements of blockchain and the foundational principles of Islamic economics. Together, these elements offer a transformative framework that challenges traditional financial systems, emphasizing transparency, equity, and decentralized governance. The paper highlights the implications of this shift and its potential to reshape the global economic landscape.
Digital technology in the metaverse field has promising potential and economic advantages. Therefore, digital assets such as Non-Fungible Tokens (NFTs), cryptocurrency, and virtual real estate have the potential to become objects of waqf, although there are challenges in the application of civil law. This research aims to analyze the opportunities and challenges of civil waqf for digital assets in the metaverse and to examine the governance of digital asset waqf in the metaverse. Digital assets in the metaverse have the potential to become waqf objects, as emphasized by Islamic law and UU RI Nomor 41 Tahun 2004 Tentang Wakaf, although there are no clear legal regulations governing them. To maximize the benefits of digital asset waqf governance in the metaverse, it is necessary to adapt smart contracts on the blockchain to ensure legal certainty and digital security, as well as appoint a nazhir capable of managing digital assets in the metaverse effectively. Therefore, despite legal challenges, the potential for managing digital waqf in the metaverse is vast, requiring regulations that are more adaptive to technological developments to ensure the sustainability and benefits of waqf for the broader community.Kata Kunci: Waqf, Digital Assets, Metaverse, Civil Law, Islamic Law, Blockchain, NFT, Cryptocurrency, Real Estate Virtual.
Operations based on cryptocurrency maintain financial infrastructures that work separately from conventional banking networks. All digital currencies operate through blockchain systems to manage their decentralized operations with digital solutions superior to basic banking functions and standardized management systems. The assessment investigates the value relationships between cryptocurrency assets and normal money provisions together with regulatory oversight and protective measures within the two systems. Both mobile payments and digital currency operations lack any factors which could interfere with their joint operations. The analysis depends on financial statistical data for standardization evaluations throughout this work. The financial industry underwent significant global changes through Bitcoin and Ethereum while Litecoin required changes that led to both positive and negative outcomes for its development. The cryptocurrency supporter group argues that asset-based crypto systems lead to reduced operational expenses and better worldwide financial outreach for wire transfers. Users of digital currency bypass traditional banking intermediaries to achieve faster processing which causes permanent breakdown at traditional banks and creates opportunities for banking customers who were previously unbanked. The cryptocurrency system remains inaccessible to computer users because of inconsistent values and safety risks and regulatory restrictions. Traditional banks invested significant time exclusively to construct their core infrastructure because such measures serve both economic safeguards and public trust requirements and regulatory standards. Standard transactions serve as essential requirements to succeed in international finance operations since banks rely on standardized systems for handling cash deposits and issuing loans while supervising money flows. Traditional bank users tend to give negative feedback due to their sluggish information processing combined with high fees and nonaccessibility to residents of remote locations and undeveloped towns. This paper uses a standardized economic analysis which examines monetary outlays against processing times as well as security procedures between the two banking systems. The research indicates that cryptocurrency provides faster worldwide payment transactions and lower costs than traditional banking procedures. The unstable crypto market shows its main weakness through hacking incidents which combine with fraudulent schemes within cryptographic security systems. Standard banking institutions perform operations at an average speed until they need extended periods for international money transfers. The study analyzes system control of decentralized operations by examining oversight concerns related to cryptocurrency management. Different national governments implement cryptocurrency regulations but several institutions remain cautious since China maintains one of the strictest crypto policies. Traditional banking security needs absolute control which prevents financial method innovation from happening. Finance systems utilizing combined cryptocurrency and traditional banking programs will develop secure systems that provide full benefits needed for worldwide financial institutions serving society across multiple levels. The study proposes academic recommendations to evaluate approaches for cryptocurrency bank integration and to study regulatory effects on business financial operations.
The rise of artificial intelligence (AI) in procurement has transformed how organizations engage with suppliers, optimize spending, and drive contract negotiations. Traditional procurement negotiations rely on human intuition, historical knowledge, and manual research. However, with the advancement of AI-driven Smart Negotiation Assistants, procurement teams can leverage real-time market intelligence, price benchmarks, and predictive analytics to autonomously negotiate contracts. This paper introduces an AI-powered Procurement Chatbot, capable of conducting supplier negotiations with minimal human intervention. The system utilizes machine learning (ML), natural language processing (NLP), and historical transaction data to negotiate terms, secure cost savings, and ensure compliance with procurement policies. Real-world case studies, including automated software licensing negotiations and dynamic supplier pricing adjustments, demonstrate how AI-driven negotiations can save millions in procurement costs, reduce cycle times by up to 40%, and mitigate supplier risks [1]. The paper also explores technical architecture, algorithmic models, and deployment strategies for integrating AI negotiation assistants into enterprise procurement workflows. Furthermore, it highlights regulatory and ethical considerations in AI-driven procurement, emphasizing transparency and fairness. By leveraging AI-driven negotiation chatbots, businesses can achieve autonomous, efficient, and data-driven procurement processes, ensuring better supplier relationships and long-term cost savings.
This article discusses the incorporation of smart contracts, blockchain technology, and the adoption of the circular economy model in the Gulf Cooperation Council region with a focus on how these innovations can improve the overall sustainability of organizations.Adopting qualitative methodology, using secondary data, and building reliable themes for analysis, it seeks to address how blockchain's decentralized and transparent nature enhances sustainable development by ensuring commodities are traceable, waste is minimized, and processes are streamlined in various sectors including energy, manufacturing and food security.As self-executing agreements, smart contracts also aid the automation of systems and processes, increase the effectiveness of procedures and eliminate the need for oversight.Countries in the Gulf Cooperation Council that are using innovations such as Ever ledger, Power ledger and IBM Food Trust Blockchain are already contributing to sustainability by cutting on management waste, curtailing fraud and encouraging responsible sourcing of materials.The research also identifies barriers to the implementation of blockchain technology in the circular economy in the region such as lack of clear regulatory framework, low level of technological adoption and lack of willingness to change.Nonetheless, the study highlights the possibilities that exist with blockchain to solve issues that hinder the shift towards a circular economy which is consistent with international standards on sustainability including responsible consumption.
Iin Indriani Mokodompis, Rizaldy Purnomo Pedju, Adamu Abubakar Muhammad
Cryptocurrency, as a rapidly evolving digital asset, has sparked significant debates regarding its legality and compliance with Islamic law. This study examines the intersection of Indonesian positive law and Islamic principles in regulating cryptocurrency as a tradable commodity (Sil’ah). Using a qualitative library research approach, the research explores regulatory frameworks such as Peraturan Menteri Perdagangan Nomor 99 Tahun 2018 and Peraturan BAPPEBTI Nomor 5 Tahun 2019, alongside Islamic legal standards for Sil’ah. Findings reveal that while Indonesian law has established a robust regulatory system ensuring transparency and security, compliance with Islamic principles requires further alignment, particularly in addressing challenges like volatility, lack of physical form, and potential gharar (uncertainty). However, digital documentation and blockchain technology provide opportunities for cryptocurrency to meet Sil’ah criteria, including ownership clarity and economic utility. The study emphasizes the potential for harmonizing positive law and Islamic law through adaptive regulations and innovative technologies such as blockchain-based smart contracts and halal asset tokenization. This integration could support a sharia-compliant digital economy, fostering inclusivity and trust among Muslim investors. The research contributes to bridging gaps in understanding cryptocurrency's role within Islamic finance and its future in the global economic landscape.
본 연구에서는 가상자산(virtual asset)을 활용한 테러자금조달 실태를 분석해 보고, 우리 정부를 비롯한 각국 정부가 이러한 양상에 어떻게 대응하고 있는지 살펴보았다. 디지털 기술의 발전으로 다양한 형태의 가상자산이 익명성이 보장된 탈중앙화 금융 플랫폼을 거 쳐 P2P(Peer-to-Peer) 방식으로 거래되고 있으며, ISIL과 알카에다 같은 국제 테러단체가 테러자금 조달에 이러한 방식을 활용한다는 사실이 밝혀졌다. 소셜 미디어, 크라우드펀딩 (Crowdfunding), 또는 NFT(Non-Fungible Token)를 가상자산 거래와 결합하여 테러자금 식 별을 더욱 어렵게 만드는 사례도 발견되었다. 이와 같이 진화하는 테러자금 조달 방식에 대응하기 위해 우리 정부는 2018년 10월, FATF(Financial Action Task Force)에서 제시한 가상자산 관련 기준을 채택한 후 이를 이행하는 차원에서 2020년 3월, ‘특정금융거래정보 의보고및이용등에관한법률’을 개정한 바 있다. 당시 개정안에는 가상자산사업자에게도 자 금세탁 방지 의무를 부과하고 가상자산사업자와 거래하는 금융회사에도 가상자산 거래와 관련하여 높은 수준의 책임성을 부과하였다. 2023년 6월에는 가상자산 이용자 보호와 불공 정거래 행위 방지를 위해 ‘가상자산시장이용자보호등에관한법률’이 제정되었다. 본 법률을 통해 불법적인 가상자산 거래에 대한 규제가 보다 용이해 졌지만, 탈중앙화 금융이나 P2P 거래에 대한 규제, 복합적인 가상자산 거래에 대한 대응 체계는 여전히 우리가 해결해야 할 과제로 남아있다.
Susi Nurkholidah, Fadillah Mursid, Andi Martina Kamaruddin, Swadia Gandhi Mahardika
The development of digital technology in today's era and brilliant contracts in blockchain technology offer new opportunities, including in the Islamic finance sector. However, using smart contracts also poses several legal challenges that need to be overcome, including the presence or absence of transparency, maysir, gharar, and riba. This new technology needs to be studied more deeply in Sharia finance because it must meet Sharia principles. This study aims to analyze the implementation of smart contracts from the perspective of maslahah mursalah, namely from the principle of benefits that are not explicitly mentioned in the Nash but are still by the sharia maqasid. In Islamic Law, this technology must fulfill the principle of justice, avoiding elements of gharar, maysir, and usury. The research method used is qualitative with a literature study approach. The data collection technique uses Secondary data collection techniques. The study results show that the application of smart contracts in Sharia contracts, such as murabahah and mudarabah, supports the goals of Sharia maqasid purposes, especially in terms of property protection, justice, and public benefit. The implementation of smart contracts has excellent potential to increase security, efficiency, and transparency in the Islamic financial sector and fulfill the principles of the agreement; namely, the object transacted in the smart contract is a halal object. However, regulation, infrastructure, and Sharia compliance challenges require essential attention. Therefore, special rules are needed to ensure that the application of this technology is in line with Sharia principles.
This study aims to explore the role of blockchain technology in enhancing the operations of Islamic financial institutions, specifically in terms of increasing transparency, efficiency, and compliance with Shariah principles. Using a qualitative descriptive-analytical approach, the research examines the technical, regulatory, and operational challenges associated with blockchain implementation and proposes strategic solutions to ensure sustainable integration. Blockchain, through distributed ledger technology (DLT), offers transparency and efficiency that align with Islamic finance principles, as evidenced in the application of sukuk. The use of smart contracts further strengthens operational efficiency, reduces gharar (uncertainty), and ensures Shariah compliance. Although blockchain presents significant advantages, this study finds that a major challenge lies in the environmental impact of consensus protocols like Proof of Work (PoW), which requires high energy consumption. This impact conflicts with Maqasid al-Shariah, which prioritizes welfare and environmental preservation. The use of more eco-friendly protocols, such as Proof of Stake (PoS) and Proof of Authority (PoA), is identified as a more efficient solution. Additionally, inadequate regulation in various Muslim-majority countries poses another barrier. Cross-border regulatory harmonization is necessary to ensure that blockchain can be applied in accordance with Shariah principles globally.
Blockchain technology has emerged as a transformative innovation with the potential to address contemporary challenges in various sectors, including finance. This study explores the role of blockchain in achieving the Maqasid al-Shari'ah (Objectives of Islamic Law), particularly in preserving wealth. The research investigates the application of blockchain in waqf (Islamic endowment) management, highlighting its potential to enhance transparency, efficiency, and accountability. By employing a descriptive and analytical methodology, this paper examines the advantages and disadvantages of blockchain technology and its alignment with Islamic principles. The findings suggest that blockchain can revolutionize waqf management by providing a decentralized, secure, and transparent platform for fund collection and distribution. However, challenges such as high energy consumption and integration costs must be addressed to fully realize its potential. This study contributes to the growing body of literature on blockchain technology and its application in Islamic finance.
Muhammad Asghar Shahzad, Shafiqul Hassan, Hafiz Ghulam Abbas
Islamic banking, firmly rooted in Sharīʿah principles, has emerged as a resilient alternative to conventional banking systems on a global scale. The adherence to Sharīʿah principles distinguishes Islamic banking from its conventional counterparts, shaping the ethos of its products and services. While various models of Sharīʿah supervision exist worldwide, Pakistan stands out with its adoption of a hybrid model blending centralized and decentralized approaches. This paper focuses on exploring the necessity and significance of a centralized Sharīʿah supervisory model through qualitative research methods. By delving into the unique features and challenges of centralized supervision, it provides valuable insights into strategies aimed at enhancing the efficacy of Central Sharīʿah Advisory Boards (CSABs). These strategies are pivotal in advancing the harmonization agenda within Islamic banking, reinforcing integrity, trust, and sustainability within the industry. Furthermore, the paper underscores the broader impact of CSABs on Islamic finance, emphasizing their role in promoting financial inclusion and socio-economic development not only in Muslim-majority countries but also beyond. By aligning banking practices with Sharīʿah principles and fostering transparency, CSABs contribute to a more equitable and resilient financial ecosystem, resonating with the core values of Islamic finance.
This study aims to analyze Islamic scholars' views on the halal or haram status of cryptocurrency in financial transactions according to Islamic jurisprudence (fiqh muamalah). Using a qualitative approach and comparative analysis method, this research explores the opinions of scholars and Islamic financial institutions regarding the use of cryptocurrency as a transactional tool. The results indicate two main groups of views: one group supports the use of cryptocurrency with specific conditions that align with Sharia, while the other group rejects it due to the presence of gharar (uncertainty) and maisir (speculation) in its use. This study provides a deeper understanding of the similarities and differences in scholars' arguments and their implications for Shariah decisions in the context of Islamic economics. The conclusion of this study is the importance of regulation and clear guidelines to ensure cryptocurrency’s compliance with Sharia principles.