Shariah-compliant cryptocurrency: Navigating opportunities and challenges at the intersection of Islamic finance and digital innovation

Olivia Putri Dahlan ()
Additional contact information
Olivia Putri Dahlan: Privietlab Research Center

Journal of Islamic Economic Insights, 2025, vol. 1, issue 1, 40-46

Abstract: The emergence of cryptocurrencies, driven by technological advancements and the rise of electronic business (e-business), presents both opportunities and challenges for Islamic finance. Cryptocurrencies, such as Bitcoin, have introduced novel digital assets that facilitate fast, borderless, and secure transactions without traditional financial intermediaries. However, their compatibility with Islamic finance principles governed by Shariah law remains a subject of debate. While some scholars argue against cryptocurrencies because of speculation and lack of intrinsic value, others explore the potential for Sharia-compliant solutions backed by tangible assets. Despite challenges, such as regulatory uncertainty and value fluctuations, blockchain technology offers transparency and security, aligning with Islamic finance's emphasis on ethical and equitable dealings. Recommendations include continued research, the development of Shariah-compliant cryptocurrencies, education initiatives, regulatory clarity, and embracing innovation to enhance financial inclusion. By implementing these recommendations, Islamic finance can navigate the complexities of cryptocurrency integration, while upholding Shariah principles and fostering inclusive economic growth.

Keywords: Cryptocurrency; Islamic Finance; Sharia Issue; Bitcoin; Blockchain (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=12825 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:jieipv:293

Ordering information: This journal article can be ordered from
https://journal.priv ... IEI/article/view/293

DOI: 10.55942/jiei.v1i1.293

Access Statistics for this article

More articles in Journal of Islamic Economic Insights from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().