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Developing a Digital Currency from an Islamic Perspective: Case of Blockchain Technology

Author

Listed:
  • Ibrahim Bassam Zubaidi
  • Adam Abdullah

Abstract

Numerous studies ranging from concept papers and reviews were conducted on the matter of blockchain and digital currencies. However, those two areas are not well researched due to its being a new area of research. Furthermore, the research on blockchain applications in the Islamic financial system precisely the potential of digital currency in providing a better alternative to current fiat money system which will be the scope of this article. The aim of revolves around exploring the potential and capability of introducing a digital currency that fulfills the Islamic law (Shari’ah) functions of money and provides a more stable currency than fiat money. The method used for analyzing this object includes a library research on related topics that helps understanding the functions of money and digital currencies and study of several cases that can assist in fulfilling the objectives of this paper in introducing an Islamic digital currency through detailed research of Islamic theory of money and civilization as well as the developments of blockchain, our findings point towards the ability of introducing a Shari’ah-compliant digital currency if all the issues on validity are addressed and resolved. However, the area of digital currencies and blockchain requires further research from a Shari’ah perspective to facilitate a better understanding on the topic.

Suggested Citation

  • Ibrahim Bassam Zubaidi & Adam Abdullah, 2017. "Developing a Digital Currency from an Islamic Perspective: Case of Blockchain Technology," International Business Research, Canadian Center of Science and Education, vol. 10(11), pages 79-87, November.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:11:p:79-87
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    References listed on IDEAS

    as
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    Cited by:

    1. Ghaemi Asl, Mahdi & Ben Jabeur, Sami & Hosseini, Seyedeh Sana & Tajmir Riahi, Hamed, 2024. "Fintech's impact on conventional and Islamic sustainable equities: Short- and long-term contributions of the digital financial ecosystem," Global Finance Journal, Elsevier, vol. 62(C).
    2. Rehman, Mobeen Ur & Asghar, Nadia & Kang, Sang Hoon, 2020. "Do Islamic indices provide diversification to bitcoin? A time-varying copulas and value at risk application," Pacific-Basin Finance Journal, Elsevier, vol. 61(C).

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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