PAPUA: International Journal of Sharia Business Management
Vol. 1 No. 1 (2024): (JUNI) PAPUA: INTERNATIONAL JOURNAL OF SHARIA BUSINESS MANAGEMENT

BLOCKCHAIN TECHNOLOGY AS A SERVICE IN ISLAMIC BANK

Manida Niti Purbayudha (STAI YPBWI Surabaya, Indoensia)



Article Info

Publish Date
08 Jul 2024

Abstract

The integration of blockchain technology in Islamic banking holds significant promise for enhancing service delivery, increasing transparency, and ensuring compliance with Sharia principles. By leveraging the unique features of blockchain, such as its decentralized and immutable nature, Islamic banks can address critical challenges related to transparency, fraud, and operational efficiency. This study adopts a qualitative research methodology to explore the integration of blockchain technology in Islamic banking services. The primary objective is to understand the benefits, challenges, and future prospects of blockchain implementation from the perspective of industry experts, regulatory bodies, and banking professionals. The study indicates that blockchain technology holds substantial promise for enhancing Islamic banks' service delivery and compliance. Its transparency and immutability align with Sharia principles, providing a secure platform for transactions. Smart contracts can automate complex processes, reducing errors and ensuring adherence to regulations. However, challenges include regulatory uncertainty, technical complexity, high costs, and privacy concerns. Clear guidelines, infrastructure investment, and privacy measures like encryption and permissioned blockchains are needed. Future prospects are optimistic, with potential for revolutionizing cross-border transactions and developing Sharia-compliant financial products as regulations and technology advance.

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Journal Info

Abbrev

papua

Publisher

Subject

Description

The journal is published twice a year in June and December. Contains scientific articles in the form of research, analysis study, theoretical study, and review of studies in the field of Islamic business, accounting, and management. Publishing this journal aims to increase the quantity and quality ...