Islamic Innovation In Financial Technology: Islamic Digital Currencies As A Model

Abstract

The rise of technology (fintech) has brought about advancements in the financial services sector including the introduction of digital currencies. In finance there is a growing interest, in exploring Sharia fintech solutions, particularly Islamic digital currencies. This research delves into the principles, innovative structures and user receptiveness towards digital currencies. The study showcases three case studies of groundbreaking currency models that incorporate Sharia compliant features such as asset backing, profit sharing mechanisms and Sharia governance. Results from a field investigation indicate that users exhibit awareness, perceive benefits and show intent to adopt these Sharia digital currencies. Users also express satisfaction, with the Sharia based attributes. The research underscores the potential of currencies to enrich and broaden the Islamic finance sector by meeting the changing needs of the Muslim community and promoting financial inclusivity in alignment with Islamic economic principles. These insights can inform the development of Sharia fintech solutions.