Journal of Islamic Economic Insights

Islamic microfinance: A review of the emerging agricultural market in the ASEAN market

2024-04-09T09:36:45+07:00

Islamic microfinance presents a burgeoning opportunity to address financial exclusion among millions of impoverished Muslims by providing financial services. This paper explores the intersection of Islamic microfinance with the agricultural market in the ASEAN region, where smallholder farmers constitute a significant demographic. While the potential of Islamic microfinance to empower farmers and promote sustainable practices is acknowledged, there remains a gap in understanding its tailored implementation and impact within the ASEAN agricultural context. By synthesizing existing literature, this review underscores the need for further research to elucidate the specific mechanisms, challenges, and impacts of Islamic microfinance in supporting agricultural development and poverty alleviation in ASEAN countries.

Integrating sharia financial mechanisms with indonesia's halal economy: Opportunities, challenges, and strategies for sustainable growth

2024-04-09T09:33:42+07:00

This study emphasizes the interconnected relationship between the Halal Economy and Islamic Financial Mechanisms, proposing that Indonesia should strategically incorporate Sharia financial mechanisms to advance its halal economy. By following Islamic finance principles, Indonesia can allure foreign investment, encourage ethical business conduct, and fulfil the increasing demand for halal products and services worldwide. Despite advancements in Indonesia's halal industry development, challenges such as the requirement for specialized expertise and strong regulatory frameworks continue to exist. However, through deliberate integration and targeted investments in education and infrastructure, Indonesia can establish itself as a key player in the global halal market. This will drive economic growth, while improving sustainable development efforts and enhancing global competitiveness.

Blockchain and Islamic Finance: Innovating Within Tradition

2024-04-09T09:35:00+07:00

The financial sector is at a crossroads, merging emerging technologies with the traditional principles of Islamic finance governed by Shariah law. This study examines the integration of blockchain technology to bolster transparency, security, and efficiency in Islamic financial systems while upholding Shariah compliance. Through a comprehensive literature review of reputable sources such as Emerald and IEEE Xplore, our findings highlight blockchain's potential to streamline Shariah-compliant processes, enhance financial inclusion, and drive innovation, addressing key challenges faced by the industry.

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

2024-04-15T14:37:22+07:00

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.

Addressing Sharia issues in cryptocurrency: Analyzing the case of Bitcoin and Blockchain Technology

2024-04-09T09:36:01+07:00

The emergence of cryptocurrency and blockchain technology has spurred significant advancements in the financial sector, raising questions regarding their compatibility with Sharia law. This study examines the convergence of cryptocurrencies, blockchain technology, and Sharia law, with an emphasis on assessing the compatibility of digital currencies with the principles of Islamic banking. The primary objective is to assess the feasibility of aligning cryptocurrencies, specifically Bitcoin, with Sharia law, and the ethical and operational criteria of Islamic finance. This study analyses the current body of literature and case studies on blockchain technology and its implementation in the Islamic financial system. This study highlights the primary difficulties associated with riba (interest), gharar (uncertainty), and maysir (gambling) in cryptocurrency, which may contradict Sharia rules. The study suggests possible remedies, such as employing different validation methods to reduce concerns related to riba and maysir and linking digital currency to tangible assets to tackle volatility. The main conclusions indicate that standard cryptocurrencies encounter difficulties in conforming to the Sharia norms. However, it is possible to create Sharia-compliant digital currencies (SCDCs) by emphasizing ethical and functional factors. Sovereign Central Digital Currencies (SCDCs) have the potential to serve as reliable and morally sound substitutes for traditional government-issued currencies in countries with Muslim populations and beyond. The article continues by highlighting the necessity for additional investigation into the development of SCDCs, examination of asset-backed currencies, and incorporation of blockchain technology in Islamic banking. These advancements have the capacity to transform Islamic finance and make significant contributions to a global economy that is more ethical, transparent, and sustainable