Islamic finance in the metaverse: meta-finance frameworks for supporting the growth of Shariah-compliant finance options in the metaspace

Klemens Katterbauer, Hassan Syed, Laurent Cleenewerck and Sema Yilmaz Genc

Chapter 16 in Islamic Finance in the Digital Age, 2024, pp 301-314 from Edward Elgar Publishing

Abstract: The metaverse has emerged as a topic of paramount importance in recent years, functioning as a virtual universe where individuals and companies can interact. While the metaverses are still in their nascent stages, there has been a notable increase in interest and capital inflow into these virtual realms. For investors and participants focused on Shariah-compliant financial practices, this presents a considerable challenge due to the current lack of Islamic financing frameworks applicable to the metaverse. In our study, we have developed new frameworks for facilitating Shariah-compliant financing within the metaverse, highlighting the challenges and considerations necessary for establishing Shariah-compliant financial instruments in this context. Our framework adapts traditional Islamic financing options, such as Murabaha and Sukuk, to the metaverse context, ensuring that both contracting mechanisms and crypto-payments align with Shariah principles and support the unique environment of the metaverse. This framework marks a significant step forward in the development of Shariah-compliant financing models within the metaverse.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2024
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