Cryptocurrencies, underpinned by blockchain technology, present significant challenges to Islamic law due to their volatile nature, speculative tendencies, and lack of intrinsic value, which introduce elements of gharar (uncertainty) and maysir (gambling), both prohibited under Sharia. Additionally, cryptocurrencies' decentralized and pseudonymous nature has raised concerns about their potential misuse in money laundering and other criminal activities, further complicating their alignment with Islamic principles. The research emphasizes the need for a multi-faceted regulatory approach, incorporating Sharia advisory boards, asset-backed cryptocurrencies, and advanced RegTech solutions such as blockchain analytics and E-KYC protocols. By fostering collaboration among scholars, regulators, and financial experts, this study aims to bridge the gap between innovative financial technologies and Islamic law, promoting ethical growth and stability in the cryptocurrency market.
Ramesh Cherinelli, D Marlene Garace Verghese, Ananda Kumar Reddy, K. Parijatha · 5 authors
This study investigates the integration of blockchain technology in financial systems, with a specific emphasis on Decentralized Finance (DeFi) and its implications for traditional banking practices. The research examines the fundamental principles of blockchain and its application in creating decentralized financial ecosystems. Through a comprehensive analysis of current DeFi platforms, protocols, and use cases, the study explores the potential benefits and challenges associated with this emerging technology. Key areas of investigation include smart contracts, decentralized lending and borrowing, yield farming, and asset tokenization. The paper also evaluates the regulatory landscape surrounding DeFi and its potential impact on established financial institutions. By comparing DeFi's operational efficiency, accessibility, and transparency with traditional banking systems, this research aims to provide insights into the future of finance and the potential for blockchain to revolutionize global financial in-frastructure. The findings indicate that while DeFi presents significant opportunities for financial innovation and inclusion, it also poses challenges related to security, scalability, and regulatory compliance that must be addressed for widespread adoption.
Purpose Muslim engagement with cryptocurrencies (CC) raises fundamental questions rooted in religious faith: How should Muslims integrate Islamic Accounting principles like zakat into this new and rapidly evolving financial paradigm? Thus, it is essential to understand CC holders’ perceptions thoroughly and whether they are willing to pay zakat using crypto assets. This research aims to explore factors influencing Muslim CC holders’ intention to pay zakat on CC, emphasizing financial risk, theory of planned behavior (TPB) constructs and Shariah compliance’s moderating role. Design/methodology/approach This attempt uses a quantitative approach through a cross-sectional research design, using purposive sampling to gather data from Muslim CC holders. An extended theory of planned behavior (ETPB) model is applied to comprehensively analyze the key factors influencing intentions to pay zakat on CC. SmartPLS software is used to generate meaningful findings. Findings The study finds that financial risk associated with CC exerted a negative influence on TPB constructs, attitude (ATT), social norms (SN) and perceived behavioral control regarding zakat on CC (PBC). However, ATT and PBC positively shaped holders’ intention to pay zakat on CC. Interestingly, Shariah compliance-moderated interactions of TPB constructs on payment intentions were statistically significant. Originality/value With the rise of CC, a profound transformation is underway in the financial landscape. As this evolution unfolds, it becomes increasingly essential for stakeholders to understand how zakat could fit into such a new and rapidly evolving paradigm. A pioneering effort was made in this study by exploring Muslim CC holders’ intentions to fulfill zakat obligations, bridging a significant gap in the literature.
Muhammad Aslam Latang, Fathurrahman Fathurrahman, M. Isnin Faried
This study aims to analyze the Islamic legal rulings on cryptocurrency as established by the 7th Ijtima Ulama Fatwa Commission of Majelis Ulama Indonesia (MUI) held in November 2021. The research focuses on clarifying the status of cryptocurrency in Islamic law amid growing digital financial innovations. Methodologically, the study employs a qualitative approach based on an in-depth review of fatwas, Islamic jurisprudence, and Indonesian legal frameworks, supported by deliberations involving over 700 scholars, religious leaders, and academics. The findings reveal that MUI declared the use of cryptocurrency as a digital currency haram due to the presence of gharar (uncertainty), dharar (harm), and incompatibility with Indonesian monetary regulations. Similarly, cryptocurrency transactions as commodities or digital assets are deemed invalid because of gharar, dharar, and qimar (gambling), as well as failure to meet the shariah condition of sil’ah (clear ownership). However, an exception applies to cryptocurrencies backed by clear underlying assets, definite value, and proven benefits, which may be permissible. This research contributes original insight into contemporary Islamic finance by addressing cryptocurrency’s evolving legal status within Indonesia’s socio-legal context. The results serve as essential guidance for Muslim communities and policymakers in navigating digital finance consistent with shariah principles.
Ahmad Dahlan Salleh, Muhammad Amir Husairi Che Rani
Bitcoin represents a new currency because of innovation to the current payment system. Its emergence as a decentralized virtual currency with its high value is the main attraction of its ownership. Nonetheless, with various innovations provided, bitcoin encounters legitimacy issues, regulatory ambiguity and being a platform for illegal activities. Thus, the main objective of this chapter is to identify bitcoin status as property according to the Islamic scholar’s views. It also aims to investigate and analyze bitcoin status as al-nuq?d (money) according to the Islamic scholar’s views and its position as virtual currency according to shariah perspective. This chapter framework applies qualitative methodology with content analysis methods. Data collection relies on document analysis descriptively from printed materials such as books, related academic writing and reliable internet sources. It reveals that bitcoin did not qualify as a property as determined by the jurists based on the risk of bitcoin’s speculation and the risk of security breaches that resulted in the loss of bitcoin owned thus categorizing bitcoin as a speculative investment and high-risk asset. The absence of thamaniyyah on bitcoin and the complexity of using bitcoin as unit of value as well as the occurrence of hacking series and malware attacks show that bitcoin does not function as al-nuq?d (money) even bitcoin is just a high-risk alternative payment method and insecure asset. This chapter also found that bitcoin is only a method of payment that is not generally accepted as a currency according to shariah based on the absence of public acceptance and the existence of ?arar (harm) as well as the risk of using bitcoin as a means of payment. This chapter proposes shariah regulations on the use of bitcoin to ensure the legitimacy of the use of currency in fulfilling the provisions of ?if? al-m?l (preservation of wealth).
This study examines the potential risks of emerging payment technologies and value transfer systems in facilitating terrorist activities. Through an analysis of publications, blogs, and websites associated with terrorist groups and their supporters, the research reveals a growing interest in leveraging cryptocurrencies like Bitcoin and online crowdfunding platform to support funding, planning, and implementation of terror attacks. While concrete evidence of large-scale cryptocurrency use by terrorist groups is limited, there are indications of links to several terror attacks globally. This study demonstrates the potential for cryptocurrencies to facilitate clandestine activities, utilizing a document published by ISIS that outlines instructions undetected. By analyzing this document, researchers highlighted the potential risks associated with the anonymous and decentralized nature of cryptocurrency transactions. The study adopted actor-network theory as its theoretical underpinning. The findings suggest that terrorist organizations are actively exploring new technologies to mitigate risks associated with traditional fund transfer methods, with some websites collecting donations in Bitcoin. The study recommends amongst others that the Law enforcement agencies must enhance their capabilities to track cryptocurrency transactions, which include training investigators in illicit finance investigations involving cryptocurrencies, recruiting experts in the field, and acquiring advanced IT systems despite the challenges.
Ryandika Abbel Syarief, Reka Dewantara, Ranitya Ganindha
In this study, the author addresses the issue of the absence of regulations concerning the Decentralized Finance (DeFi) system as a development within the cryptocurrency asset ecosystem. The Decentralized Finance system is capable of establishing a decentralized financial ecosystem using cryptocurrency assets. The regulatory framework in Indonesia has yet to provide adequate legal protection for cryptocurrency asset customers engaging in transactions within the Decentralized Finance system. This research employs a normative juridical method, utilizing a statute approach, a conceptual approach, and a comparative approach. The primary, secondary, and tertiary legal materials obtained by the author are analyzed using grammatical and systematic interpretation methods. The author concludes that the urgency of regulating the supervision of the Decentralized Finance system lies in its potential to provide legal protection for cryptocurrency asset customers by minimizing the risk of losses, particularly given society's difficulty in adapting to the rapid advancements in financial technology. The regulatory conceptualization proposed by the author, based on comparisons with regulations related to cryptocurrency and Decentralized Finance in Singapore, Australia, the European Union, and the FATF, suggests tightening the assessment and compliance processes for service providers and/or parties conducting business activities with service providers. This includes requiring specific certifications or licenses for the operation of Decentralized Finance systems, identifying the status and role of each party or entity involved, establishing governance protocols and emergency schemes, mandating reporting obligations and transparency for services and the cryptocurrency assets used within the system, and ensuring compliance oversight concerning the scale and scope of service products.
Purpose The purpose of this study is to assess the social utility of the Islamic banking system, with a focus on the Tunisian market as a case example. Design/methodology/approach The authors study individuals’ potential demand for Islamic financial products in different Tunisian regions. To do that, the authors conducted a national survey based on the quota sampling method to select the number of interviewed by governorate and sex. The authors then obtained a sample that included 1,600 persons from different social categories with a minimum age of 18 years. Findings The survey results show that this potential demand is significant but Tunisian Islamic Banks should work more to enlarge their existing customer base. Indeed, they should consider the level of Islamic finance knowledge and the sociodemographic characteristics (such as governorate, level of education and annual income) to ensure social welfare. They should also supply Islamic microfinance products to ensure the inclusion of poorer agents. In addition, Islamic banks should provide competitive products and services at lower cost and higher quality that are compliant with the Sharia principles to encourage entrepreneurs or richer agents to invest in profitable and innovative projects, especially in economically disadvantaged regions. This would strengthen accountable decentralization and fight income inequality in Tunisia. Originality/value This work reflects the behavior and preferences of all Tunisians (adopters or non-adopters of IFPS) including the Tunisian inland areas inhabitants. To do this, we include the socio-demographic factors in our analysis.
Istianah Zainal Asyiqin, M. Fabian Akbar, Manuel Beltrán Genovés
The rapid advancement of the digital age has driven significant developments in payment systems, influencing financial decisions and fostering economic activity. This study explores the use of cryptocurrencies as digital currencies in financial transactions, particularly in the context of investments, while assessing their compatibility with Islamic law. Employing a normative legal approach and a descriptive-analytical method, the research examines legal principles and facts concerning cryptocurrency regulation in Indonesia. The findings reveal that, despite the potential benefits of cryptocurrencies, their usage remains contentious from both regulatory and Islamic law perspectives. In Islamic law, cryptocurrency transactions are classified as haram lighairihi due to elements of uncertainty (gharar) and speculative risks, making them non-compliant with Sharia principles. As a solution, this study proposes a framework for integrating cryptocurrency exchanges with Rupiah transactions in accordance with Sharia economic principles. This integration aims to mitigate risks while maintaining the flexibility of digital transactions, ensuring they align with both regulatory standards and Islamic legal frameworks.
Syafiqah Ilyani Ahmad Saharudin, Norhidayah Abu Bakar
This paper presents a comparative analysis of the regulatory frameworks, product development, and market penetration of Islamic finance in Malaysia and Saudi Arabia: two leading players in the global Islamic finance industry. Malaysia adopts a dual system that combines centralized and institutional Shariah oversight, while Saudi Arabia employs a decentralized regulatory approach. In terms of product development, both countries prioritize Shariah compliance and innovation, though Malaysia offers a broader range of Islamic financial products. Market penetration is evaluated using key indicators such as Islamic banking assets, Takaful assets, and Sukuk issuance. The findings reveal that each country excels in different areas: Saudi Arabia leads in the total asset value of Islamic finance, whereas Malaysia shows a higher proportional adoption of Islamic financial products. Overall, the study provides a comprehensive understanding of the factors driving the success and distinct characteristics of Islamic finance in these two nations, offering valuable insights into their evolving financial landscapes and highlighting their respective strengths.
At the core of Islamic finance ideal models, profit and loss sharing (PLS) contracts (mudaraba and musharaka) have been avoided in practice by Islamic financial institutions (IFIs) who, since their inception, suffer from a Murabaha Syndrome by relying on debt-like instruments as their main financing tools. While the literature focuses on moral hazard and adverse selection as the main reasons for the underuse of PLS, we show that these asymmetric information issues are not a cause but a consequence of a deeper problem that the existing scholarship has overlooked. The main barrier to using PLS is the difference between the institutional framework that once enabled traders to use mudaraba and musharaka to finance their business ventures and the impersonal exchange framework in which modern IFIs operate. In this chapter, the study assesses the main challenges to the PLS financing application, focusing on mudaraba, and explore the solutions offered by the blockchain and the nascent Decentralized Finance (DeFi) that are relevant to Islamic Finance. We argue that blockchain can offer an institutional solution to the Murabaha Syndrome and help reduce the gap between Islamic finance ideals and practices.
The world is currently experiencing the emergence and expansion of non-fungible tokens (NFTs). Typically, NFTs utilize the same blockchain technology as Ethereum, distinguishing each token by its uniqueness, rendering it non-interchangeable with other tokens. These tokens can represent various forms of digital assets, including photographs, videos, drawings, music, or even tweets. Experts anticipate that the total investment in the NFT market from 2022 to 2026 will reach an estimated 14 billion US dollars. The objective of this research is to elucidate the concept of NFTs and to determine the Shariah rulings pertinent to them, employing both descriptive and analytical methodologies. This study encompasses a legal examination of the subject matter, focusing on the financial characteristics of NFTs, their potential benefits, and their projected economic value. Furthermore, the study examines NFTs from a Maqasid perspective, considering their potential risks and advantages.
People who lack a bank account or access to financial services are called “unbanked.” Adults who were not banked in 2021 numbered 1.4 billion. However, there has been tremendous progress in the financial inclusion rate (banking the unbanked), especially after the COVID-19 pandemic. Today, 71% of people in developing countries have a bank account, up from 42% a decade ago. Overall, 76% of adults worldwide have bank accounts currently, which was only up to 51% a decade ago. Digital payments have seen the highest rise in the last few years, which accelerated under COVID-19 mobility limitations and when people began to view paper currency as unhygienic. Two-thirds of adults in the modern world send or receive digital payments. In many developing countries, approximately 40% of people made their first digital payment from their account (to a merchant or for a utility service). Despite this, approximately 1.4 billion adults worldwide do not have a bank account. These are the most difficult people to approach because they are usually rural dwellers, poorer, and less educated women. Government and other payments should be digitalized, but much more is required. Governments, private businesses, and financial service providers like fintechs should collaborate to reduce banking access obstacles and enhance the financial, data, and physical infrastructure. A brand-new global business has emerged to integrate the unbanked population into the world economy. Fintech (financial technology) and blockchain-based decentralized finance (DeFi) are two burgeoning new industries that aim to improve traditional finance by providing lower costs, faster transactions, peer-to-peer (P2P) services, new asset classes, the elimination of minimum thresholds, and equal online admittance. The chapter examines the use of blockchain technology in financial inclusion and how developing economies can benefit from information democratization through DeFi.
Ahmad Dahlan Salleh, Muhammad Amir Husairi Che Rani
Bitcoin is one of the most popular digital currencies in its community. It commenced with various innovations with a focus on transforming the world's monetary system, meanwhile bitcoin is faced with legitimate constraints, absence of regulation and becoming a tool to illegal activities. Generally, this paper aims to discuss the operating mechanism of bitcoin, as well as the ma?la?ah (public interest) and mafsadah (harm) that exist in the bitcoin financial system to measure its effectiveness in realizing the concept of ?if? al-M?l (preservation of wealth). Additionally, this paper lists several views of Islamic scholars and fatwas (legal pronouncements) related to the status of bitcoin according to Sharia and analyzes the relevance of using bitcoin as an instrument of payment according to the perspective of siy?sah sharciyyah (Islamic politics). The outcome of this discussion will explain the position of bitcoin as a new currency according to the Sharia perspective in realizing ?if? al-M?l (preservation of wealth)
Purpose This paper aims to analyze intention for applying blockchain-based technology in zakat management regarding the readiness of zakat institutions and muzakki in Indonesia. Design/methodology/approach This research is a mixed method, namely, using qualitative research to examine the readiness of practitioner and academics in welcoming blockchain-based financial technology and using quantitative research to measure people’s knowledge and intentions to adopt zakat using blockchain technology based on UTAUT theory (Unified Theory of Acceptance and Use of Technology). Findings The findings indicate that performance expectancy, social influence, facilitating conditions and sentiment positively affect the intention to adopt blockchain technology in zakat payments, while effort expectancy do not. Additionally, interviews reveal that practitioners and academics support blockchain technology but are unprepared for its implementation. Practical implications The implications of this study suggest important directions for policy makers, notably zakat institutions, supporting the application of blockchain technology and the adaptation of user-friendly information system services to meet the requirements of zakat service users. Originality/value This study fills the gap in previous research by offering a more comprehensive analysis of the collaboration between zakat and blockchain technology through three different perspectives, namely, practitioners (BAZNAS), academics and users of zakat services (muzakki).
The concepts, governance frameworks, and contributions of Islamic finance to sustainable development are the main topics of this paper. Shariah law adherence is stressed, and concepts like profit-and-loss sharing, risk-sharing, and the ban on interest (riba) and speculative activity (gharar) are covered. The ethical and asset-backed characteristics of important products, such as Takaful (Islamic insurance) and Sukuk (Islamic bonds), are examined. The article describes how Islamic finance aligns with the Sustainable Development Goals (SDGs), highlighting how it affects social responsibility, environmental efforts, and financial inclusivity. With comparisons between centralized and decentralized alternatives in different areas, governance frameworks and obstacles in Shariah-compliant enterprises are discussed. Standardization, openness, and the function of Shariah boards are among the topics discussed. Islamic finance is promoted as a morally sound and long-lasting substitute for traditional financial systems by encouraging equality, collaboration, and social justice.
Integrating blockchain into Islamic finance offers significant potential to enhance transparency, security, and efficiency of the sector, which closely aligns with the principles of Sharia law. This study aims to comprehensively review the current applications of blockchain in Islamic finance, identify key challenges, and propose future research directions. The study employs a bibliometric analysis, focusing on authoritative sources from Scopus and Web of Science. The analysis results show that blockchain can significantly enhance financial inclusion by developing a decentralized platform for microfinance and fundraising, reducing costs associated with sukuk issuance, and improving the efficiency and transparency of zakat management. However, challenges such as regulatory, legal, and technological issues, including scalability and Sharia compliance, remain significant barriers to widespread adoption. The study concludes that while blockchain presents significant opportunities to transform Islamic finance, future research is needed to address these challenges and promote the technology’s potential for financial inclusion and socio-economic development in the Islamic context.
Purpose This paper aims to examine the Islamic marketing literature to uncover potential customer adoption behaviours and enhance the effectiveness of blockchain-based halal logistics services in catering to customer demands. The findings of this paper provide substantial contributions to the realms of both halal logistics services and Islamic marketing literature, delineating future paths for research. By delving into halal logistics practices, integration procedures and service provider performance, this paper assists stakeholders in enhancing halal logistics services to meet the changing demands of customers effectively. Design/methodology/approach This paper uses a systematic review incorporating bibliometric analysis to examine past and contemporary research topics, selecting and appraising contributions while analysing and consolidating data. A methodical approach has been used to identify, assess and incorporate pertinent studies on Islamic characteristics, traceability technology, blockchain integration and halal logistics practices. Findings After screening and analysing 139 selected documents with the VOS viewer, it is evident that among a 1,000 keywords, 15 stand out in terms of frequency and link strength. The research highlights the considerable academic interest in themes such as “blockchain”, “halal logistics” and “supply chain”, underscoring their importance. The findings of this paper help bridge the gap in Islamic marketing by linking technology with religious values. It suggests that the integration of blockchain technology in halal logistics enhances operational efficiency while aligning with both operational and Islamic marketing principles, promoting ethical conduct and transparency as key enablers. Practical implications The theoretical significance of this paper lies in establishing a correlation among three key research domains: technology, symbolised by blockchain; customer-centric operations, incorporating the halal supply chain and logistics within Islamic marketing. The outcomes reflect consumer behaviour and Shariah compliance. This integration has the potential to introduce innovative theoretical frameworks that encompass religious ethics in marketing, logistics and technological advancements. Originality/value This paper comprehensively analyses the intersection between blockchain technology, halal logistics, supply chain management and Islamic marketing. The paper has comprehensively analysed previous studies and outlined the future research path for blockchain technology in halal logistics and its application in Islamic marketing literature.
This paper explores the evolution of decentralized finance (DeFi), represented as Rama, and its adversary, centralized finance (CeFi), represented as Ravana in the metaphorical context of the Ramayana. Drawing inspiration from the story of the Raja's attempt to fill a temple with milk for Lord Shiva, we examine how individual greed, lack of transparency, and improper contributions can lead to the collapse of collective financial systems. Just as Ravana's greed and manipulation disrupt harmony, CeFi is characterized by centralized control, fostering inefficiency and inequity. In contrast, DeFi offers a decentralized, transparent system that aims to align with Shiva's Linga, the symbol of purity and divine order, ensuring collective participation for an optimized financial ecosystem.
Mohammad Zulfakhairi Mokthar, Noraina Mazuin Sapuan, Sharul Shahida Shakrein Safian
Blockchain technology offers transformative benefits for waqf by enhancing transparency, security, and efficiency. Its decentralized ledger system allows for independent transaction verification, reduces central authority risks, and improves accountability. However, while the potential benefits are significant, the success of blockchain-based waqf initiatives hinges on the level of trust that stakeholders place in this technology. Therefore, the study aims to examine the effect of trust in blockchain technology on the intention to adopt waqf blockchain with insight from importance-performance map analysis to better understand the relations between trust and intention. The study adopted a survey research design and data was collected through questionnaires distributed throughout Malaysia. The collected data were then analyzed using Smart-PLS software. The results of the analysis indicate a strong positive relationship between trust in blockchain technology and the intention to adopt waqf blockchain. However, the importance-performance map analysis shows a critical disparity exists between user expectations and actual performance, especially regarding the transaction process, which scored the lowest in performance. This implies a need to focus on improving the transaction process to align with user expectations.
Muhammad Fakhri Amir, Syahruddin Kadir, Sumarlin Sumarlin
Technological innovations are revolutionizing the financial sector through decentralized systems. The emergence of digital currencies necessitates a shift in the financial system toward services that accommodate the development of digital money in the era of Society 5.0. This study aims to explore the potential of Decentralized Finance (DeFi) and its maslahah (benefit) for future financial services in Indonesia. A qualitative approach was employed using library research by collecting primary and secondary data from journals, books, and other literature. Data were analyzed using descriptive analysis through data grouping, data display, and conclusion drawing. The findings indicate that DeFi has the potential to become one of the future financial services as it aligns with technological advancements and the development dimensions of the Society 5.0 era. DeFi offers five maslahah benefits: (1) Protecting religion (hifzu al-din) by serving as an alternative investment instrument; (2) Protecting life (hifzu an-nafs) by becoming a financial market instrument; (3) Protecting progeny (hifzu al-nasl) by encouraging income growth; (4) Protecting intellect (hifzu al-‘aql) by developing human resource potential; and (5) Protecting wealth (hifzu al-maal) by accommodating sources of income and financing for the benefit of society. Therefore, DeFi holds significant potential to contribute positively to Indonesia's financial future by providing services aligned with the values of maslahah and the technological advancements of Society 5.0.========================================================================================================ABSTRAK - Desentralisasi Keuangan dan Maslahahnya: Membentuk Layanan Keuangan Masa Depan di Indonesia. Inovasi teknologi mengarah pada revolusi sektor keuangan melalui sistem terdesentralisasi. Kemunculan mata uang digital memaksa sistem keuangan untuk beralih ke layanan yang mengakomodasi perkembangan uang digital di era 5.0. Penelitian ini bertujuan untuk menggali potensi Decentralized Finance (DeFi) berikut maslahahnya sebagai layanan keuangan masa depan di Indonesia. Penelitian ini menggunakan pendekatan kualitatif dengan metode kepustakaan, dimana data-data dikumpulkan dari artikel jurnal, buku, dan literatur lainnya. Analisis data dilakukan dengan metode deskriptif melalui pengelompokan data, penyajian, dan penarikan kesimpulan. Hasil penelitian menunjukkan bahwa DeFi memiliki potensi untuk menjadi salah satu layanan keuangan di masa depan karena selaras dengan kemajuan teknologi dan dimensi pengembangan untuk era 5.0. DeFi menawarkan lima manfaat maslahah: (1) Melindungi agama (hifzu al-din) dengan menjadi instrumen investasi alternatif; (2) Melindungi jiwa (hifzu an-nafs) dengan menjadi instrumen pasar keuangan; (3) Melindungi keturunan (hifzu al-nasl) dengan mendorong pertumbuhan pendapatan; (4) Melindungi akal (hifzu al-‘aql) dengan mengembangkan potensi sumber daya manusia; dan (5) Melindungi harta (hifzu al-maal) dengan mengakomodasi sumber pendapatan dan pembiayaan untuk kepentingan masyarakat. DeFi memiliki potensi yang signifikan untuk berkontribusi secara positif terhadap masa depan sistem keuangan Indonesia dengan menyediakan layanan yang sejalan dengan nilai-nilai maslahah dan kemajuan teknologi era 5.0.
Purpose: This research concludes that, with a strategic and collaborative approach, blockchain technology can be an effective tool for transforming the Islamic banking industry. Methodology: This study uses qualitative methods with literature analysis from 19 journals, one book, and three websites to explore how this technology can be applied in risk management, asset tracking, and interbank transactions. Results: The research results reveal that this technology can reduce fraud, manipulation, and cyberattacks, as well as increase customer and sharia authority trust through transaction transparency. However, there are major challenges to overcome, such as immature regulatory aspects, the need for a strong infrastructure, and a lack of understanding of this technology among customers. This study also emphasizes the importance of collaboration between Islamic banking, regulators, and other stakeholders to maximize the potential of blockchain technology. Limitations: Case studies on the use of smart contracts in the Sharia banking industry show that this technology can increase efficiency and Sharia compliance, reduce administration costs, and simplify transactions. Contribution: This study describes the role of blockchain in the sukuk issuance process. Blockchain technology, which is known for its decentralization, transparency, and security characteristics, has great potential to increase efficiency and transparency in Sharia banking operations.
The rise of cryptocurrency has sparked a global financial revolution, captivating the interest of various demographics, including the digitally savvy Generation Z. This study explores the Islamic perspective on cryptocurrency investment, focusing particularly on the intersection of Generations Z Fear of Missing Out (FoMO) and their personal traits of traders. Within Islamic finance, which emphasizes ethical investing and prohibits speculative activities akin to gambling, cryptocurrency presents a unique challenge. The rapid appreciation of digital currencies and the pervasive influence of social media amplify FoMO among young investors, driving them to partake in high-risk ventures. This behavioral inclination often conflicts with Islamic principles, which advocate for risk-sharing and tangible asset-backed transactions. The study delves into how Generations Z psychological predispositions, such as overconfidence, risk tolerance, and the allure of quick gains, align or clash with Islamic ethical standards. It examines the potential for educational interventions to reconcile these differences by promoting financial literacy that aligns with Sharia law. Additionally, the study addresses the broader implications of these trends on the development of Islamic financial products tailored to digital assets, aiming to bridge the gap between religious adherence and modern investment opportunities. This research highlights the necessity for a nuanced understanding of Generations Z investment motivations and the importance of integrating Islamic ethical considerations into the evolving landscape of cryptocurrency. The method used in this study is a mixed method, namely a combination of quantitative and qualitative methods. The quantitative method is used to analyze multi-time series forecasting on Generations Z fear of missing out (FoMO) and their personal traits as traders. While the qualitative method is used to analyze the results of an in-depth interview and find the potential conflicts with Islamic principles advocating for minimum transaction risk and for the use tangible asset-backed transactions. The results suggest that generation Z becomes more immersed in digital and social media landscapes, their susceptibility to FoMO intensifies, driving more frequent and sometimes impulsive trading behaviours. Concurrently, as these young investors gain more experience and exposure to the cryptocurrency market, their personal traits such as risk tolerance, adaptability, and tech-savviness also evolve, potentially leading to more sophisticated trading strategies. However, these practices conflict with Islamic point of view.
This study explores the adoptability of cryptocurrency within the Islamicfinancial system, a topic of substantial debate among scholars and practitioners. Given thedecentralized nature of cryptocurrency, its acceptance within the conventional and Islamicfinancial systems presents unique challenges. To ascertain the legitimacy and possibleadoptability of cryptocurrency under Sharīʿah law, this paper employs qualitative researchmethods, using in-depth interviews of twenty-four Sharīʿah scholars. These scholars,selected through purposive and snowball sampling techniques, possess expert knowledgeof both cryptocurrency and the Islamic financial system. The results revealed that theacceptability of cryptocurrency in Sharīʿah-compliant financial systems is contingent onits centralization and its function as a store of value, aligning with the objectives (maqasid)of Sharīʿah. Cryptocurrency's lack of intrinsic value necessitates its backing by a centralauthority or asset to mitigate risks and potential fraud. This research offers valuableinsights into the considerations required for cryptocurrencies' adoption in Islamic finance,contributing to the ongoing debate on their legitimacy under Sharīʿah law.