Smart Contract and Islamic Finance
A smart contract is a disruptive technology and gaining market share at a rapid pace. The main purpose of smart contract is to facilitate the transfer of digital assets between the contracting parties based on pre-agreed stipulations or terms. The concept of smart contracts makes enormous sense to Islamic financial institutions to implement it for Islamic financing services. A smart contract is closer to Islamic contract and in compliance with Shariah objective to ensure transparency in business dealings or transactions such as asset definition, payment terms, enforcement and following the principle of trust. This chapter focuses on the application of smart contract in Islamic finance in areas of cash financing, trade financing, remittance and so on.
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