<![CDATA[The rapid advancement of financial technology has significantly transformed the Islamic finance industry, ranging from digital banking, sharia e-wallets, sharia peer-to-peer lending, to digital sukuk. This transformation raises a fundamental question regarding the extent to which digital-based Islamic financial instruments effectively realize the objectives of Islamic law (maqashid al-shariah), rather than merely fulfilling formal contractual compliance. This study aims to analyze the implementation of sharia principles on the effectiveness of Islamic financial instruments in the digital era through the lens of maqashid al-shariah. A qualitative descriptive-analytical library research method was employed, examining national and international scholarly journals published within the last five years, regulatory documents, and official reports of Islamic financial institutions. The findings indicate that the digitalization of Islamic finance positively contributes to the realization of hifz al-din, hifz al-nafs, hifz al-'aql, hifz al-nasl, and hifz al-mal through expanded access, transaction cost efficiency, and enhanced financial inclusion. Nevertheless, this effectiveness still faces challenges, including gaps in digital sharia financial literacy, weak sharia compliance supervision over technology platforms, data security risks, and a potential shift from maslahah-oriented practice toward mere formal compliance. This study recommends strengthening digital sharia governance, improving public literacy, and fostering regulatory synergy between financial authorities and the National Sharia Board so that the digital transformation of Islamic finance remains grounded in the essence of maqashid al-shariah.]]>
