Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges

Blockchain technology is rapidly gaining the attention of financial institutions around the world, especially among decision makers in Islamic financial institutions who are planning to apply this innovative technology into their institutions activities which could be an upright solution for their i...

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Main Authors: Omar Alaeddin, Mohanad Al Dakash, Tawfik Azrak
Format: Article
Language:English
Published: University of Tehran 2021-07-01
Series:Journal of Information Technology Management
Subjects:
Online Access:https://jitm.ut.ac.ir/article_83116_d3fcd59cdcaa586536fd9ba2f700410d.pdf
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author Omar Alaeddin
Mohanad Al Dakash
Tawfik Azrak
author_facet Omar Alaeddin
Mohanad Al Dakash
Tawfik Azrak
author_sort Omar Alaeddin
collection DOAJ
description Blockchain technology is rapidly gaining the attention of financial institutions around the world, especially among decision makers in Islamic financial institutions who are planning to apply this innovative technology into their institutions activities which could be an upright solution for their issues and challenges. This paper contributes to the emerging literature on financial technology by discussing some of the innovative applications of blockchain in Islamic financial institutions. In addition, this paper sheds light on the main opportunities and challenges facing application of Blockchain Technology in the Islamic financial industry and highlight the way forward to address these issues. Relying on the previous literature and analysis; this paper confirms the enormous opportunities for utilizing blockchain technology in various Islamic financial applications such as Waqf, Zakat and Sukuk. On the other hand, the main challenges towards implementing blockchain in this industry are the complexity of Islamic finance products added to the opacity of its application which end up with unclear regulations and lack of standards.
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language English
publishDate 2021-07-01
publisher University of Tehran
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series Journal of Information Technology Management
spelling doaj-art-46686e525eba41109001b463c2c817332025-08-20T01:56:41ZengUniversity of TehranJournal of Information Technology Management2008-58932423-50592021-07-011339911510.22059/jitm.2021.8311683116Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and ChallengesOmar Alaeddin0Mohanad Al Dakash1Tawfik Azrak2Senior Lecturer, University Kuala Lumpur Business School, Malaysia.Lecturer, Emirates Institute for Banking and Financial Studies, United Arab Emirates.Assistant Professor, Social Sciences, Faculty of Islamic Studies, University of Ankara, Turkey.Blockchain technology is rapidly gaining the attention of financial institutions around the world, especially among decision makers in Islamic financial institutions who are planning to apply this innovative technology into their institutions activities which could be an upright solution for their issues and challenges. This paper contributes to the emerging literature on financial technology by discussing some of the innovative applications of blockchain in Islamic financial institutions. In addition, this paper sheds light on the main opportunities and challenges facing application of Blockchain Technology in the Islamic financial industry and highlight the way forward to address these issues. Relying on the previous literature and analysis; this paper confirms the enormous opportunities for utilizing blockchain technology in various Islamic financial applications such as Waqf, Zakat and Sukuk. On the other hand, the main challenges towards implementing blockchain in this industry are the complexity of Islamic finance products added to the opacity of its application which end up with unclear regulations and lack of standards.https://jitm.ut.ac.ir/article_83116_d3fcd59cdcaa586536fd9ba2f700410d.pdfislamic financeblockchaininnovative technologyfintech
spellingShingle Omar Alaeddin
Mohanad Al Dakash
Tawfik Azrak
Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
Journal of Information Technology Management
islamic finance
blockchain
innovative technology
fintech
title Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
title_full Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
title_fullStr Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
title_full_unstemmed Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
title_short Implementing the Blockchain Technology in Islamic Financial Industry: Opportunities and Challenges
title_sort implementing the blockchain technology in islamic financial industry opportunities and challenges
topic islamic finance
blockchain
innovative technology
fintech
url https://jitm.ut.ac.ir/article_83116_d3fcd59cdcaa586536fd9ba2f700410d.pdf
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AT mohanadaldakash implementingtheblockchaintechnologyinislamicfinancialindustryopportunitiesandchallenges
AT tawfikazrak implementingtheblockchaintechnologyinislamicfinancialindustryopportunitiesandchallenges