 Blockchain Toolkit for Islamic Financial ServicesMing Sen Thong
Chapter Chapter 3 in Blockchain for Financial Governance in Malaysia and Singapore, 2025, pp 83-138 from Springer Abstract: Abstract Blockchain technology, including public ledgers and decentralized identities (DIDs), can ensure zakat reaches the rightful recipients while preserving their privacy. In Singapore, the shift to digital cash waqf results in a greater need for transparency and accountability through blockchain and smart contracts to ensure the proper use of waqf funds. For businesses, blockchain can reduce the issuance costs of micro sukuk, enabling micro, small, and medium enterprises (MSMEs) and small and medium enterprises (SMEs) in Malaysia and Singapore to raise funds. Blockchain also has much to offer to address the operational issues in Islamic financial institutions (IFIs), such as the technical Shariah non-compliance of foreign exchange (FX) spot. For murabaha transactions, smart contracts can address the current imbalance where IFIs provide guarantees without charging fees. Blockchain could also help manage IFIs’ liquidity risks through decentralized liquidity saving mechanisms (LSMs) particularly when combined with using cryptocurrencies such as stablecoins as Shariah-compliant alternatives to fiat currency. Date: 2025 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-1281-9_3 Ordering information: This item can be ordered from DOI: 10.1007/978-981-96-1281-9_3 Access Statistics for this chapter More chapters in Springer Books from Springer |
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