<p>This study investigates the financial psychology of Moroccan investors in cryptocurrency, focusing on the determinants of perceived investment risk. <strong>Design/methodology/approach</strong>: A quantitative survey was conducted among Moroccan investors, and regression analysis was applied to identify the factors influencing their risk perceptions, including transaction fees, complexity, security, anonymity, fast transactions, volatility, and lack of regulation. <strong>Findings</strong>: The analysis reveals that volatility and lack of regulation significantly heighten perceived risk, whereas fast transactions, reduced complexity, and improved security mitigate it. These results suggest targeted strategies to address volatility and regulatory concerns can decrease perceived risks and attract more investors. <strong>Originality</strong>: This research provides new insights into the interplay of technological, regulatory, and psychological factors influencing investment behavior in a developing country context, specifically Morocco, thereby contributing to the broader literature on financial inclusion and technology adoption. <strong>Research limitations/implications</strong>: The study's limitations include its reliance on self-reported data and the specific focus on Moroccan investors, which may limit the generalizability of the findings. <strong>Practical implications</strong>: By addressing identified risk factors, policymakers and cryptocurrency platforms can develop targeted interventions to reduce perceived risks, thus encouraging broader investment and enhancing financial inclusion. <strong>Social implications</strong>: Improving cryptocurrency literacy and addressing regulatory challenges can promote more inclusive financial participation, fostering economic growth and reducing financial disparities in Morocco.</p><p><strong>JEL:</strong> D81, D91, E44, G11, G23, G41, O16</p><p>Cette étude examine la psychologie financière des investisseurs marocains en cryptomonnaies, en se concentrant sur les déterminants clés de la perception du risque d'investissement. <strong>Conception/méthodologie/approche</strong> : Une enquête quantitative a été menée auprès d'investisseurs marocains, et une analyse de régression a été utilisée pour identifier les facteurs influençant leurs perceptions du risque, notamment les frais de transaction, la complexité, la sécurité, l'anonymat, la rapidité des transactions, la volatilité et les lacunes réglementaires. <strong>Résultats</strong> : La volatilité et l'absence de réglementation augmentent significativement le risque perçu, tandis que la rapidité des transactions, la réduction de la complexité et l'amélioration de la sécurité le réduisent. Ces résultats suggèrent que le traitement des questions de volatilité et des préoccupations réglementaires pourrait atténuer les risques et encourager un investissement plus large. <strong>Originalité/valeur</strong> : Cette recherche apporte de nouvelles perspectives sur l'interaction des facteurs technologiques, réglementaires et psychologiques qui influencent le comportement d'investissement au Maroc, contribuant ainsi à la littérature plus large sur l'inclusion financière et l'adoption des technologies. <strong>Limites de la recherche</strong> : La dépendance aux données auto-déclarées et le focus sur les investisseurs marocains peuvent limiter la généralisation des résultats. <strong>Implications pratiques</strong> : Les décideurs politiques et les plateformes de cryptomonnaies peuvent utiliser ces informations pour développer des interventions ciblées visant à réduire les risques perçus et à promouvoir l'inclusion financière. <strong>Implications sociales</strong> : Améliorer la littératie en cryptomonnaies et relever les défis réglementaires pourrait favoriser une inclusion financière et une croissance économique plus large au Maroc.</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0715/a.php" alt="Hit counter" /></p>
Purpose:The purpose of this study is to investigate the adoption of financial technology on the green growth and sustainability of SMEs.The root issue is that despite the increasing attention of fintech exposure in business markets, Malaysian businesses are hesitant to fully adopt this emerging technology.This study aims to bridge the gap between the potential of fintech innovations and their practical implementation by adopting two theoretical approaches: 1) Research-based view model for green growth 2) Extended version of the technology acceptance model for the fintech dimension.Design/Methodology/Approach: The research adopts a quantitative method using a crosssectional survey design with a five-point Likert scale questionnaire.Data was collected from 247 decision-makers representing SMEs in Selangor, Malaysia, and the sampling technique uses stratified random sampling.The data were analyzed using SPSS and Smart-PLS.Findings: Fintech factors of green financing and green investment significantly influence the green growth sustainability, while cryptocurrency is not significant towards it.Interestingly, the finding on the moderator role of blockchain smart contracts does not play a role in moderating all the fintech factors toward green growth sustainability.Practical Implication: The direct relationship of green financing and green investment is driving the future innovation toward green growth sustainability, particularly for SMEs, but cryptocurrency gives a different insight on it.On the other hand, integrating blockchain smart contracts as the moderator for the fintech dimension does not allow the businesses to move toward green sustainability.It is essential for companies to provide platforms by offering knowledge and awareness about this technology.Aside from this, the study provides empirical implications for SMEs green growth sustainability using fintech platforms.Originality value: The research findings reveal that the moderating effect of blockchain smart contracts was insignificant in driving green sustainability outcomes for SMEs.This innovation did not support green growth sustainability to enhance transparency and increase the accountability into the environmental claims.It challenges the technology-centric view
This research paper aims to explore aspects of smart contract technology in Islamic finance, focusing on its legitimacy, objectives, and potential applications in Islamic social finance. This study relies on comparative qualitative analysis methodology and revolves around discussing the nature of smart contracts, the challenges related to their formulation and implementation, regulatory frameworks, and the cryptocurrencies used within them. The study presents proposed models for utilizing smart contracts in Islamic social finance and uses comparisons between different experiences to provide in-depth insights.This article also presents proposed models for leveraging smart contracts in Islamic social finance, using a comparative qualitative analysis approach. The study underscores the significance of integrating new innovations to maintain leadership in finance, as Islamic finance seeks to integrate its principles with Sharia-compliant systems and develop products that combine technological excellence with Sharia compliance. This study provides important findings and valuable recommendations for integrating smart contracts into Islamic social finance, contributing to enhancing innovations and developing advanced financial tools that effectively meet market needs while complying with Sharia principles. ملخص البحث هذه الورقة البحثية تهدف إلى استكشاف جوانب تقنية العقود الذكية في المالية الإسلامية، مركزة على شرعيتها، وأهدافها، واستخداماتها المحتملة في التمويل الاجتماعي الإسلامي. يتمحور منهج الدراسة حول مناقشة طبيعة العقود الذكية، والمشكلات المتعلقة بصياغتها وتنفيذها، والأطر التنظيمية لها، والعملات المشفرة المستخدمة ضمنها. كما يقدم الورق نماذج مقترحة للاستفادة من العقود الذكية في التمويل الاجتماعي الإسلامي، باستخدام منهج تحليلي نوعي مقارن. وتبرز أهمية الدراسة في الحاجة الملحة إلى اعتماد الابتكارات الجديدة للحفاظ على الريادة في المالية، حيث تسعى المالية الإسلامية لدمج مبادئها مع الأنظمة المتوافقة مع الشريعة وتطوير منتجات تجمع بين التميز التكنولوجي والامتثال الشرعي. الدراسة تأتي بنتائج مهمة وتوصيات قيمة لدمج العقود الذكية في التمويل الاجتماعي الإسلامي، مما يسهم في تعزيز الابتكارات وتطوير أدوات مالية متقدمة تلبي احتياجات السوق بشكل أكثر فعالية وامتثالًا للشريعة.
The integration of blockchain technology and cryptocurrency within the framework of Islamic finance has raised significant ethical, legal, and regulatory concerns. Blockchain technology, known for its transparency, decentralization, and immutability, offers a promising solution for enhancing financial inclusion, transparency, and security in financial transactions. However, the use of cryptocurrencies, such as Bitcoin and Ethereum, introduces complexities due to their speculative nature, which may violate Sharia principles like gharar (excessive uncertainty) and riba (usury). This study explores the compatibility of blockchain and cryptocurrency with Sharia law, focusing on the challenges and opportunities that arise in the context of Islamic finance. The study analyzes existing fatwas (Islamic legal opinions), regulatory frameworks, and the application of Sharia principles to emerging financial technologies. It discusses the ethical dimensions of blockchain and cryptocurrency, such as their potential to promote fairness and transparency, while addressing concerns about privacy violations and the risks associated with unregulated trading. Furthermore, the research highlights the lack of standardized global regulations for cryptocurrency and blockchain, which complicates their adoption in Muslim-majority countries. The study also emphasizes the importance of establishing Sharia-compliant governance frameworks and regulatory standards to ensure the ethical use of these technologies. Finally, the study provides recommendations for further research in the intersection of Islamic law, digital finance, and global governance frameworks, focusing on the development of policies that ensure Sharia-compliant digital assets and technologies.
Purpose: Aim of the study was to analyze the impact of cryptocurrency adoption on financial inclusion in Myanmar. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Cryptocurrency adoption in Myanmar holds promise for enhancing financial inclusion by offering faster and cheaper remittance options, especially in underserved rural areas. However, challenges such as regulatory uncertainties and concerns over consumer protection must be addressed through clear and supportive regulatory frameworks. To maximize benefits, Myanmar should focus on improving financial literacy, developing user-friendly cryptocurrency platforms integrated with mobile money services, and establishing coherent regulatory guidelines in collaboration with international bodies. Unique Contribution to Theory, Practice and Policy: Diffusion of innovation theory, technology acceptance model (TAM) & institutional theory may be used to anchor future studies on impact of cryptocurrency adoption on financial inclusion in Myanmar. Practical initiatives should prioritize enhancing financial literacy and digital education programs tailored to Myanmar's population. Initiatives that promote understanding of blockchain technology and cryptocurrencies among consumers, businesses, and policymakers are crucial. Policymakers in Myanmar need to develop clear and supportive regulatory frameworks that balance innovation with consumer protection.
The Indonesian property sector has experienced significant growth, with a remarkable 54% annual increase in property prices and a 9% rise in real estate companies' profits over the past decade, driven by rapid urbanisation and robust economic development. This growth underscores the need for innovative and transparent financing solutions. This study investigates the potential integration of blockchain technology into a sukuk model tailored for Indonesia's property market. Sukuk, which comply with Sharia principles, offer asset ownership opportunities and could significantly benefit from blockchain technology by enhancing ownership certainty, streamlining transactions, enabling real-time monitoring, and reducing both costs and associated risks. Despite the promising synergies, the application of blockchain in Indonesian sukuk remains largely unexplored. The research methodology involves qualitative interviews with industry experts and simulations to thoroughly examine the sukuk processes, identify potential challenges, and evaluate the benefits that blockchain can offer. Anticipated outcomes include greater market efficiency and enhanced transparency; however, challenges such as regulatory hurdles and issues related to technology adoption may arise. The study proposes a collaborative framework involving Islamic financial institutions, property developers, and blockchain experts to develop a robust and effective sukuk model. This research is pioneering in its approach and aims to provide transformative insights into how blockchain could revolutionize sukuk financing in Indonesia's rapidly expanding property sector.
This study explores the potential of Islamic gold-backed cryptocurrencies in sustainable finance by focusing on volatility transmission between these cryptocurrencies and conventional digital assets like Bitcoin and PaxGold. Using a Time-Varying Parameter Vector Autoregression (TVP-VAR) approach, we analyze data from December 2019 to July 2023, including the COVID-19 pandemic period. Findings reveal a complex volatility network, with Bitcoin and HelloGold as major transmitters of spillover shocks, while X8X and PaxGold mainly serve as net recipients. Notable interactions between Bitcoin and Islamic gold-backed cryptocurrency markets show short-lived pairwise volatility interactions. Islamic gold-backed cryptocurrencies, net recipients of volatility, absorb market shocks, making them suitable for hedging against volatility. This can aid in diversifying portfolios, mitigating adverse market impacts, and informing risk management and regulatory approaches. Our research emphasizes the importance of Islamic finance in ethical and sustainable investment within the evolving cryptocurrency market.
Andika Prawira Buana, Rizki Ramadani, Aan Aswari, Zainuddin Zainuddin
Cryptocurrency has become a key focus in the evolving landscape of virtual finance, sparking a divide among Islamic scholars. The debate centres on whether cryptocurrency should be considered permissible for transactions under Islamic law. This study explores the polarisation among scholars, some of whom permit cryptocurrency use while others prohibit it. Using normative legal research methods with statutory and conceptual approaches from an Islamic law perspective, the study draws on secondary data, including primary, secondary and tertiary legal materials. The findings reveal that some scholars oppose cryptocurrency due to its lack of intrinsic value and high volatility, which leads to gharar (uncertainty). Conversely, others argue that cryptocurrency can be permitted if limited to monetary functions and not for other purposes. The study concludes by recommending that, as cryptocurrency becomes increasingly prevalent, Islamic scholars should work to establish ijma’ (consensus) and qiyas (analogical reasoning) to form a clear basis for determining its permissibility according to Islamic principles.
Najhan Muhamad Ibrahim, Munira Abu Bakar, Siti Sarah Abdul Rahman, Muhammad Amrullah Drs Nasrul
The article provides a critical assessment of cryptocurrencies as digital assets within the framework of Islamic legal theory, or Usul al-Fiqh. The researcher is none other than Mohd Daud Bakar, a renowned authority on Islamic law and finance. The rise in popularity of cryptocurrencies as a digital representation of wealth has raised questions about whether they are consistent with Islamic principles and financial ethics. Both contemporary legal theories and the foundations of traditional Islamic jurisprudence are thoroughly examined in order to evaluate the nature of cryptocurrencies. To determine its classification and legitimacy under Islamic law, it takes into account the key features of cryptocurrencies, such as decentralisation, cryptographic security, and digital scarcity, within the framework of Usul al-Fiqh principles. The research also examines the potential impact of cryptocurrencies on the broader Islamic financial industry, considering its potential applications as a medium of exchange, investment instrument, and store of wealth. It also addresses the advantages and disadvantages of cryptocurrencies in the context of Islamic finance, particularly in relation to riba (usury), gharar (uncertainty), and haram (prohibited) activities. In summary, by supplying details on cryptocurrency legal classification, acceptability as digital assets, and consequences for Islamic financial principles, this research contributes to the ongoing conversation concerning cryptocurrencies in the framework of Islamic law.
Lulu Anggriani, Defa Gustara Maulana, Mahipal Mahipal
The advancement of the digital era which is increasingly widespread and commonplace has encouraged a shift in transactions that makes various transactions easier. Modern innovation in the digital era has expanded payment methods beyond the traditional use of cash and current accounts (non-physical). Many people utilize cryptocurrency as digital money, but there are unavoidable pros and cons to this technology based on the blockchain protocol. Various arguments have been put forward for and against cryptocurrencies in Indonesia. One argument is that this does not adhere to standard practices for transactions and currencies. Another argument is that the Indonesian government has firmly stated that Bitcoin and similar virtual currencies are not legal tender in the country. The widespread use of digital money in people's lives requires research and analysis from religious and technology experts considering these events and facts. Bitcoin and other cryptocurrency transactions are considered gharar and dharar from an Islamic economic perspective
Achmad Napis Qurtubi, Efendi Sugianto, Muhammad Umar Kelibia
This study investigates the legality of Bitcoin from the perspective of Fiqh Muamalah through qualitative analysis and literature review. Fiqh Muamalah, an Islamic jurisprudential framework, regulates economic transactions according to Sharia law. The research examines whether Bitcoin, as a digital currency, aligns with Islamic legal and ethical standards by analyzing scholarly articles, religious texts, and fatwas issued by Islamic scholars. Key considerations include Bitcoin's nature as a currency, its speculative role, and potential for illicit activities. Findings reveal diverse scholarly opinions, with some viewing Bitcoin as permissible under specific conditions, while others raise concerns about its speculative nature and lack of intrinsic value. This study aims to provide comprehensive insights into Bitcoin's legality within Fiqh Muamalah, offering valuable information for policymakers, financial institutions, and Muslim investors.
The rapid rise and widespread global adoption of cryptocurrencies in recent years has fundamentally transformed the international financial landscape, with digital assets increasingly being recognized for their potential to influence the stability and performance of traditional capital markets. Against this backdrop, this study aims to empirically investigate the impact of cryptocurrency returns on Islamic vs. conventional stock returns in Gulf Cooperation Council (GCC) countries. The salient distinctions between Islamic and conventional stock markets include fundamental differences in principles, investment allocations, and risk profiles, underscoring the importance of examining the impact of cryptocurrency returns on these distinct equity segments. Daily data were collected from stock indices in five GCC countries over the period 2016–2019, including two sub-periods: before and after the 2017 crypto crash. Pooled OLS, fixed effects, random effects, and generalized linear models (GLMs) were used to analyze the data collected during the study. With the GCC increasingly focusing on cryptocurrency markets, there is growing concern about these markets’ potential impact on regional stocks. This study addresses the important questions of whether the impacts of the cryptocurrency market on Islamic vs. conventional stock markets differ throughout the GCC region and how these impacts have evolved since the crypto crash period. The findings reveal that cryptocurrency returns had a negative impact on both GCC Islamic and conventional stock market returns for the full sample period (2016–2019), and the negative effect was far more pronounced for conventional stocks. For the two sub-periods before and after the crash, only the cryptocurrency market and conventional GCC stocks remained negatively correlated, while the cryptocurrency market and the GCC Islamic stock markets became uncorrelated. Thus, for the calmer sub-periods before and after the crypto crash, the rise in cryptocurrency returns may have enticed GCC investors away from conventional stocks, perhaps resulting in a decline in their investment in these stocks. Meanwhile, those who invest in Islamic stocks may not be exposed to this temptation.
Mukhlishin Mukhlishin, Abdul Wahab, Bambang Setiaji, Magomed Tazhdinov
This research investigates the management and regulatory practices of zakat maal (wealth tax) in Malaysia, Turkey, and Indonesia, aiming to provide a comparative analysis grounded in empirical data. Methodologically, the study employs a comparative qualitative analysis based on secondary data from academic literature, government reports, and institutional publications. The results show, first, Malaysia employs a centralized and technologically integrated approach, ensuring transparency and efficiency in zakat collection and distribution. In contrast, Turkey adopts a decentralized model driven by non-governmental organizations and community participation, fostering flexibility but posing challenges in standardization and oversight. Indonesia's hybrid model combines governmental oversight with private sector involvement, aiming to balance regulatory control with local adaptability, yet needs help in coordination and public trust. Second, the policy enhancements such as improved coordination mechanisms, strengthened regulatory frameworks, and enhanced public awareness to optimize Zakat's role in poverty alleviation and social welfare across Malaysia, Turkey, and Indonesia. This research contributes to the broader discourse on Islamic finance and social policy by providing nuanced insights into zakat management practices, offering valuable implications for policymakers, practitioners, and scholars interested in enhancing zakat efficacy globally.
Muhammad Izzul Syahmi Zulkepli, Nur Bakri Abd Hamid, Hazrul Hizam Karim, Mohammad Taqiuddin Mohamad
The rapid development in technology, especially smart contract technology, poses challenges in aligning its principles with the Shariah perspective. Although this technology has great potential to facilitate human affairs in various fields, including the financial, zakat and halal sectors, the gap between Shariah researchers and the understanding of this technological innovation is wide due to the complexity of smart contracts involving technical aspects and new innovations. Therefore, the purpose of this study is to explore the challenges in understanding smart contract technology from the perspective of Islamic law. A qualitative approach based on library research was applied to achieve the objectives of the study by referring to relevant documents and literature. The collected data was then analyzed using thematic content analysis methods, enabling the identification of themes and patterns in the literature related to smart contracts and Shariah principles. The results found that there is a significant gap in the understanding of smart contracts among Shariah researchers, mainly due to the technical complexities involved and limited accessibility to relevant information. To address the knowledge gap, it is important to increase access to comprehensive resources that describe the technical aspects of smart contracts along with Shariah principles. Collaboration between technologists and Shariah scholars are important to facilitate mutual understanding and bridge the gap between the two domains. Additionally, ongoing research and discourse is encouraged to refine the understanding of smart contracts within the Shariah framework.
Cryptocurrency appeared amid digital technology's growth tremendously, offering fast, transparent, auditable, and secure features. However, its presence and status in Islamic law are still debatable among the Community. Cryptocurrency is based on blockchain and has decentralized finance, contrary to the current conventional system, namely central banks. The purpose of this study is to see community resistance over cryptocurrencies and its views on the Islamic perspective. This study is qualitative with a phenomenology approach. Data sources were obtained through in-depth interviews and structured ones. The analysis carried out in this study used the maqashid sharia approach, fiqh rules, and ushul fiqh. The result of this study showed that the concept of decentralized finance has yet to be able to take over the role of central banks. The majority of perspectives provided by the ulama, who were consulted as primary sources in this research, maintain the belief that cryptocurrency remains an unreliable medium of exchange and a risky long-term asset.
Dzuljastri Bin Abdul Razak, Mustafa Omar Mohammed, Yavuz Türkan, Ethem KILIÇ
With technology development, investment tools also vary. Money and capital market instruments are at the forefront of these, and virtual currencies have become investment tools. Because virtual currencies are not religiously permissible by many organizations causes the devout people to stay away from them. This study investigates the return and volatility interaction between Islamic Indices and Bitcoin in Türkiye and Malaysia. The study uses weekly data for the period 24 November 2013 – 2 January 2022 obtained from investing.com. Multivariate Dynamic Conditional Correlation (DCC-GARCH) and multivariate dynamic stochastic volatility models were used to determine the volatility dispersion between Islamic indices and Bitcoin. Results show that the volatilities of Türkiye Islamic Index, Malaysia Hijrah Shariah Index and Bitcoin are permanent. Volatility of Bitcoin, however, has no effect on the return of the Türkiye Islamic Index and the Malaysian Hijrah Shariah Index. Likewise, the volatility of Islamic indices does not affect the return of Bitcoin. According to the results of the DC-MSV model, the volatility of Islamic indices and the volatility of Bitcoin do not affect each other. This indicates that Islamic index investors and Bitcoin investors differ.
One of the goals of international policy is financial inclusion, which may be attained by individuals who possess financial literacy and are able to make wise financial decisions. The use of financial technology and decentralized finance is one of the key factors shaping the inclusive space. This chapter aims to conduct an inclusive analysis of the role of financial literacy in maximizing the impact of decentralized finance on financial inclusion. The discussion in this chapter contributes to the emerging studies that examine the role of decentralized finance in boosting financial inclusion. Insights from this chapter can improve our understanding of the importance of financial innovation for unprivileged people and can also help regulators appreciate the nexus between fintech and financial inclusion. The chapter also provides a discussion on some difficulties that persist with implementing decentralized finance at a larger scale and how financial literacy plays a primordial role in meeting these challenges and improving how well DeFi works for people, businesses, and governments.
Abstract This study examines the nexus between the good and bad volatilities of three technological revolutions—financial technology (FinTech), the Internet of Things, and artificial intelligence and technology—as well as the two main conventional and Islamic cryptocurrency platforms, Bitcoin and Stellar, via three approaches: quantile cross-spectral coherence, quantile-VAR connectedness, and quantile-based non-linear causality-in-mean and variance analysis. The results are as follows: (1) under normal market conditions, in long-run horizons there is a significant positive cross-spectral relationship between FinTech's positive volatilities and Stellar’s negative volatilities; (2) Stellar’s negative and positive volatilities exhibit the highest net spillovers at the lower and upper tails, respectively; and (3) the quantile-based causality results indicate that Bitcoin’s good (bad) volatilities can lead to bad (good) volatilities in all three smart technologies operating between normal and bull market conditions. Moreover, the Bitcoin industry’s negative volatilities have a bilateral cause-and-effect relationship with FinTech’s positive volatilities. By analyzing the second moment, we found that Bitcoin's negative volatilities are the only cause variable that generates FinTech's good volatility in a unidirectional manner. As for Stellar, only bad volatilities have the potential to signal good volatilities for cutting-edge technologies in some middle quantiles, whereas good volatilities have no significant effect. Hence, the trade-off between Bitcoin and cutting-edge technologies, especially FinTech-related advancements, appear more broadly and randomly compared with the Stellar-innovative technologies nexus. The findings provide valuable insights for FinTech companies, blockchain developers, crypto-asset regulators, portfolio managers, and high-tech investors.
Savera Hanif, Ahsan Raza Khan, Ehzaz Mustafa, Mazhar Ali · 6 authors
Quran is the Holy book of Muslims revealed to the last Prophet (SAW) during the previous 1400 years. The internet has made everything available to everyone in the modern world. The existence of digital copies of the Quran and its verses creates tampering opportunities for groups with malicious intents. False Quranic verses are available online containing symbols that are missing or incomplete statements. Globally, followers of the Holy Quran are concerned about the spread of falsehoods. A trusty framework using blockchain technology is being developed to ensure the integrity of the Holy Quran. Blockchain technology is used in the study to build digital trust, which is an emerging distributed ledger technology. Based on the Hyperledger fabric framework, the suggested architecture is tested on the IBM blockchain platform. Three phases make up the proposed architecture: execution, ordering, and validation. The components of the framework include participants, a Quran-distributed ledger, consensus, and chaincode. The blockchain storage system sets the Quranic hash in the Quran distributed ledger. Consensus is reached to agree on a specific transaction to be validated. Chaincode specifies the logic and endorsement policy, allowing interaction with the ledger. The suggested frame-work shows how users and establishers collaborate with the network to validate and verify Quranic verses. The research suggests using blockchain technology to ensure the integrity of Quranic verses, which aids in the conservation of the text while also demonstrating a method for verifying its authenticity.
The rise of innovation and technological development has triggered a revolution in the financial sector with a new 'non-centralized' system. The purpose of this study is to comprehend the idea of decentralized finance and pinpoint its advantages. Using literature sources, this study employs a qualitative descriptive methodology. Books, periodicals, and other publications are examples of secondary data. According to the study's findings, DeFi has five maslahah: 1) Maintain religion (hifzu al-din); 2) Preserve the soul (hifzu an-nafs); 3) Preserve offspring (hifzu al-nasl); 4) Preserve the intellect (hifzu al-'aql); and 5) Preserve property (hifzu al-maal). These principles align with technology and the development aspects of the era of Society 5.0. Consequently, it is advised that the government implement a regulation utilizing blockchain technology in the banking industry.
Cryptocurrencies have sparked intense debate within the global business and financial sectors. While promising substantial investment growth, they also present significant challenges, particularly concerning investor protection. In the context of Islamic business, the emergence of cryptocurrencies raises profound questions regarding compliance with Sharia principles and safeguarding investor interests. This article aims to scrutinize these issues from an Islamic business perspective, focusing on investor protection. Through a synthesis of literature and conceptual analysis, this study identifies several critical concerns. Firstly, it assesses the Sharia compliance of cryptocurrencies concerning their structure, transactions, and utility. Secondly, it examines risks associated with price volatility and the stability of investment values. Thirdly, it addresses the ambiguity in regulations and legal frameworks, impacting investor security and protection. Finally, it discusses the integration challenges of Islamic business ethics in the cryptocurrency landscape. The findings underscore that while cryptocurrencies offer potential for lucrative returns, they also entail substantial risks in terms of investor protection from an Islamic business standpoint. Consequently, there is a pressing need for robust regulatory frameworks that align with Sharia principles, alongside enhancing investor awareness and comprehension of cryptocurrency investment risks
As important participants in Sharia governance, Malaysia and Indonesia emphasize the importance of a Sharia supervisory board at the institutional level to ensure compliance with Islamic principles. This study provides a comparative analysis of Sharia governance practices in Indonesia and Malaysia, focusing on the key differences and similarities between the Sharia governance frameworks in Malaysia and Indonesia. The method adopted in this study was document research. This method allows researchers to access a wide range of information and perspectives from various sources such as books, academic journals, government reports, and online databases. The findings reveal that both Malaysia and Indonesia have implemented Sharia governance frameworks in their Islamic financial institutions. However, their structures and regulatory frameworks differ from each other. Malaysia follows a two-tier structure with a comprehensive framework, whereas Indonesia follows a decentralized model with dispersed regulations. Both countries require the establishment of a Sharia committee at the institutional level to ensure compliance with the Sharia principles. Therefore, this comparative analysis enhances the understanding of Sharia governance in Islamic banking and finance, shedding light on the strengths and weaknesses of Malaysia and Indonesia's frameworks