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Enhancing trust through digital Islamic finance and blockchain technology
Purpose This paper aims to provide a reflective discussion on the different avenues of blockchain application in Islamic finance in promoting trust and transparency for increased accountability between parties involved in the delivery of Sharīʿah-compliant products and services. Design/methodology/a...
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| Published in: | Qualitative research in financial markets 2021-06, Vol.13 (3), p.328-341 |
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| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c395t-120d3df5220eacf1018b6ed73509d15ce45a0fa0bb2813b95a4ba23a7d8aa30d3 |
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| cites | cdi_FETCH-LOGICAL-c395t-120d3df5220eacf1018b6ed73509d15ce45a0fa0bb2813b95a4ba23a7d8aa30d3 |
| container_end_page | 341 |
| container_issue | 3 |
| container_start_page | 328 |
| container_title | Qualitative research in financial markets |
| container_volume | 13 |
| creator | Chong, Felicia Hui Ling |
| description | Purpose
This paper aims to provide a reflective discussion on the different avenues of blockchain application in Islamic finance in promoting trust and transparency for increased accountability between parties involved in the delivery of Sharīʿah-compliant products and services.
Design/methodology/approach
This paper discusses on blockchain benefits in Islamic finance while providing an illustration with smart Sukuk. Having identified the advantages of the development of Islamic financial technology (i-FinTech), this study ends by debating a couple of challenges (computational codification of Sharīʿah principles and environmental impact) that have to be addressed to promote the development of a real sustainable Islamic FinTech.
Findings
This paper also identifies two challenges in using blockchain in i-Fintech. The first challenge refers to the extent to which Sharīʿah principles can be computationally encoded. Blockchain makes public all transactions that ease Sharīʿah compliance checks and determine if these transactions are Islamic in nature but this check can be done only after their operation. The second challenge is related to the algorithmic protocol used to validate smart contracts (including smart Sukuk). This situation calls into question the principles of Maqasid al-Sharīʿah according to which transactions should not harm society.
Originality/value
In the current debates related to the development of Islamic FinTech, this paper also identifies two challenges in using blockchain in i-Fintech. |
| doi_str_mv | 10.1108/QRFM-05-2020-0076 |
| format | article |
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This paper aims to provide a reflective discussion on the different avenues of blockchain application in Islamic finance in promoting trust and transparency for increased accountability between parties involved in the delivery of Sharīʿah-compliant products and services.
Design/methodology/approach
This paper discusses on blockchain benefits in Islamic finance while providing an illustration with smart Sukuk. Having identified the advantages of the development of Islamic financial technology (i-FinTech), this study ends by debating a couple of challenges (computational codification of Sharīʿah principles and environmental impact) that have to be addressed to promote the development of a real sustainable Islamic FinTech.
Findings
This paper also identifies two challenges in using blockchain in i-Fintech. The first challenge refers to the extent to which Sharīʿah principles can be computationally encoded. Blockchain makes public all transactions that ease Sharīʿah compliance checks and determine if these transactions are Islamic in nature but this check can be done only after their operation. The second challenge is related to the algorithmic protocol used to validate smart contracts (including smart Sukuk). This situation calls into question the principles of Maqasid al-Sharīʿah according to which transactions should not harm society.
Originality/value
In the current debates related to the development of Islamic FinTech, this paper also identifies two challenges in using blockchain in i-Fintech.</description><identifier>ISSN: 1755-4179</identifier><identifier>EISSN: 1755-4187</identifier><identifier>DOI: 10.1108/QRFM-05-2020-0076</identifier><language>eng</language><publisher>Bingley: Emerald Publishing Limited</publisher><subject>Bank technology ; Blockchain ; Business models ; Digital currencies ; Digital economy ; Financial institutions ; Financial services ; Innovations ; Interoperability ; Islamic financing ; Peer to peer computing ; Social networks ; Startups ; Trust</subject><ispartof>Qualitative research in financial markets, 2021-06, Vol.13 (3), p.328-341</ispartof><rights>Emerald Publishing Limited</rights><rights>Emerald Publishing Limited 2021</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c395t-120d3df5220eacf1018b6ed73509d15ce45a0fa0bb2813b95a4ba23a7d8aa30d3</citedby><cites>FETCH-LOGICAL-c395t-120d3df5220eacf1018b6ed73509d15ce45a0fa0bb2813b95a4ba23a7d8aa30d3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/2542203280/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/2542203280?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,780,784,11688,27924,27925,36060,44363,74895</link.rule.ids></links><search><creatorcontrib>Chong, Felicia Hui Ling</creatorcontrib><title>Enhancing trust through digital Islamic finance and blockchain technology</title><title>Qualitative research in financial markets</title><description>Purpose
This paper aims to provide a reflective discussion on the different avenues of blockchain application in Islamic finance in promoting trust and transparency for increased accountability between parties involved in the delivery of Sharīʿah-compliant products and services.
Design/methodology/approach
This paper discusses on blockchain benefits in Islamic finance while providing an illustration with smart Sukuk. Having identified the advantages of the development of Islamic financial technology (i-FinTech), this study ends by debating a couple of challenges (computational codification of Sharīʿah principles and environmental impact) that have to be addressed to promote the development of a real sustainable Islamic FinTech.
Findings
This paper also identifies two challenges in using blockchain in i-Fintech. The first challenge refers to the extent to which Sharīʿah principles can be computationally encoded. Blockchain makes public all transactions that ease Sharīʿah compliance checks and determine if these transactions are Islamic in nature but this check can be done only after their operation. The second challenge is related to the algorithmic protocol used to validate smart contracts (including smart Sukuk). This situation calls into question the principles of Maqasid al-Sharīʿah according to which transactions should not harm society.
Originality/value
In the current debates related to the development of Islamic FinTech, this paper also identifies two challenges in using blockchain in i-Fintech.</description><subject>Bank technology</subject><subject>Blockchain</subject><subject>Business models</subject><subject>Digital currencies</subject><subject>Digital economy</subject><subject>Financial institutions</subject><subject>Financial services</subject><subject>Innovations</subject><subject>Interoperability</subject><subject>Islamic financing</subject><subject>Peer to peer computing</subject><subject>Social networks</subject><subject>Startups</subject><subject>Trust</subject><issn>1755-4179</issn><issn>1755-4187</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2021</creationdate><recordtype>article</recordtype><sourceid>M0C</sourceid><recordid>eNptkE1LAzEQhoMoWLQ_wFvA8-ok2XR3j1JaLVRE0XOYTbIfdZutye6h_94sFUFwLjOH95lhHkJuGNwxBvn969v6OQGZcOCQAGSLMzJjmZRJyvLs_HfOiksyD2EHsQTPF3kxI5uVa9Dp1tV08GMY6ND4fqwbatq6HbCjm9DhvtW0al3MWYrO0LLr9adusHV0sLpxfdfXx2tyUWEX7PynX5GP9ep9-ZRsXx43y4dtokUhh4RxMMJUknOwqCsGLC8X1mRCQmGY1DaVCBVCWfKcibKQmJbIBWYmRxSRvSK3p70H33-NNgxq14_exZOKyzSuja9BTLFTSvs-BG8rdfDtHv1RMVCTNDVJUyDVJE1N0iIDJ8burcfO_Iv88Sy-ASCkbd0</recordid><startdate>20210622</startdate><enddate>20210622</enddate><creator>Chong, Felicia Hui Ling</creator><general>Emerald Publishing Limited</general><general>Emerald Group Publishing Limited</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0U~</scope><scope>1-H</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>F~G</scope><scope>K6~</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20210622</creationdate><title>Enhancing trust through digital Islamic finance and blockchain technology</title><author>Chong, Felicia Hui Ling</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c395t-120d3df5220eacf1018b6ed73509d15ce45a0fa0bb2813b95a4ba23a7d8aa30d3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2021</creationdate><topic>Bank technology</topic><topic>Blockchain</topic><topic>Business models</topic><topic>Digital currencies</topic><topic>Digital economy</topic><topic>Financial institutions</topic><topic>Financial services</topic><topic>Innovations</topic><topic>Interoperability</topic><topic>Islamic financing</topic><topic>Peer to peer computing</topic><topic>Social networks</topic><topic>Startups</topic><topic>Trust</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Chong, Felicia Hui Ling</creatorcontrib><collection>CrossRef</collection><collection>Global News & ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ProQuest Central</collection><collection>AUTh Library subscriptions: ProQuest Central</collection><collection>ProQuest Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM Global (ProQuest)</collection><collection>One Business (ProQuest)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>Qualitative research in financial markets</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Chong, Felicia Hui Ling</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Enhancing trust through digital Islamic finance and blockchain technology</atitle><jtitle>Qualitative research in financial markets</jtitle><date>2021-06-22</date><risdate>2021</risdate><volume>13</volume><issue>3</issue><spage>328</spage><epage>341</epage><pages>328-341</pages><issn>1755-4179</issn><eissn>1755-4187</eissn><abstract>Purpose
This paper aims to provide a reflective discussion on the different avenues of blockchain application in Islamic finance in promoting trust and transparency for increased accountability between parties involved in the delivery of Sharīʿah-compliant products and services.
Design/methodology/approach
This paper discusses on blockchain benefits in Islamic finance while providing an illustration with smart Sukuk. Having identified the advantages of the development of Islamic financial technology (i-FinTech), this study ends by debating a couple of challenges (computational codification of Sharīʿah principles and environmental impact) that have to be addressed to promote the development of a real sustainable Islamic FinTech.
Findings
This paper also identifies two challenges in using blockchain in i-Fintech. The first challenge refers to the extent to which Sharīʿah principles can be computationally encoded. Blockchain makes public all transactions that ease Sharīʿah compliance checks and determine if these transactions are Islamic in nature but this check can be done only after their operation. The second challenge is related to the algorithmic protocol used to validate smart contracts (including smart Sukuk). This situation calls into question the principles of Maqasid al-Sharīʿah according to which transactions should not harm society.
Originality/value
In the current debates related to the development of Islamic FinTech, this paper also identifies two challenges in using blockchain in i-Fintech.</abstract><cop>Bingley</cop><pub>Emerald Publishing Limited</pub><doi>10.1108/QRFM-05-2020-0076</doi><tpages>14</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1755-4179 |
| ispartof | Qualitative research in financial markets, 2021-06, Vol.13 (3), p.328-341 |
| issn | 1755-4179 1755-4187 |
| language | eng |
| recordid | cdi_crossref_primary_10_1108_QRFM_05_2020_0076 |
| source | ABI/INFORM Global (ProQuest); Emerald:Jisc Collections:Emerald Subject Collections HE and FE 2024-2026:Emerald Premier (reading list) |
| subjects | Bank technology Blockchain Business models Digital currencies Digital economy Financial institutions Financial services Innovations Interoperability Islamic financing Peer to peer computing Social networks Startups Trust |
| title | Enhancing trust through digital Islamic finance and blockchain technology |
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