Blockchain Technology in Managing Halal Cryptocurrency
Present-day Islamic banking stands on the ground rules set by the interest-based economy. Islamic wealth management is doing a continual progress from “less halal to more halal” but is often challenged by the well-established interest-based economy, thus slowing down its progression. Is there any alternative for Islamic banking to re-establish from the ground-up and win the financial world instead of making a compromise approach? Indeed, the bitcoin and its underlying blockchain technology proved that alternate methods are possible to challenge the financial institutions without getting consensus, compromises, or approval of anybody, but to stick to a well-defined preset rules and principles. Since the Islamic banking has its own unchangeable concepts and rules, finding opportunities using blockchain to improve Islamic banking and other halal activities is way more than a technology adoption due to the fact that the blockchain is deep rooted on truthfulness and transparency—the same core founding elements of Islamic banking. Using blockchain technology, it is interesting to see that Islamic banking can produce its global halal currency, enable Shari’ah principles using smart contracts for wealth management including zakat, inheritance, etc., and can disrupt the financial world by storm.