The impact of the Blockchain technology on the global Sukuk industry: smart contracts and asset tokenisation

Foglie, Andrea Delle; Panetta, Ida Claudia; Boukrami, Elias; Vento, Gianfranco A.

doi:10.1080/09537325.2021.1939000

Cited by 13 publications

(22 citation statements)

References 25 publications

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“…Blockchain has become one of the most popular technologies behind cryptocurrencies. This stream discuss the implementation of blockchain technology on various Islamic financial services, including the Sukuk industry, musharakah scheme, takaful, and zakat (Delle Foglie et al, 2021;Al-Sakran and Al-Shamaileh, 2021;Abdeen et al, 2019;Mohd Nor et al, 2021). Blockchain classifies and records the transaction, which is connected to every party.…”

Section: Gjr-garch Methods Under Corrected DCC (Cdcc)mentioning

confidence: 99%

“…Hence, it increases the accountability in financial services, which in turn, promotes trust between the parties (Chong, 2021). Furthermore, Delle Foglie et al (2021) and Busari and Aminu (2021) demonstrated that the adoption of smart contract and tokenization on Sukuk would support the development of Sukuk by reducing operational cost, assuring shariah compliance, strengthening standardization, removing the ambiguities from shariah interpretations, and speed-up the transaction process (N. Khan et al, 2022). Despite the numerous advantages of implementing blockchain technology in Islamic financial services, the lack of legal regulation related to blockchain, the absence of shariah standard of Islamic FinTech, and the complexity of Islamic finance principles become the primary factors that prevent the escalation of blockchain integration in Islamic financial institutions (Alaeddin et al, 2021).…”

Section: Gjr-garch Methods Under Corrected DCC (Cdcc)mentioning

confidence: 99%

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Fintech in islamic finance literature: A review

Alshater

Saba²,

Supriani³

et al. 2022

Heliyon

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Section: Gjr-garch Methods Under Corrected DCC (Cdcc)mentioning

confidence: 99%

Section: Gjr-garch Methods Under Corrected DCC (Cdcc)mentioning

confidence: 99%

Fintech in islamic finance literature: A review

Alshater

Saba²,

Supriani³

et al. 2022

Heliyon

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“…This situation is similar to the pharmaceutical area, where the halal mandate is mentioned in the Hadith. Meanwhile, in the financial sector, BC adoption is more intended to ensure that Islamic law is used as the basis for transactions (Foglie et al. , 2021).…”

Section: Discussionmentioning

confidence: 99%

“…, 2020). For reliability in the financial industry, BC uses a consensus mechanism or a decentralized system in operating the sharia financial system (Foglie et al. , 2021).…”

Section: Discussionmentioning

confidence: 99%

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Exploring the potential of blockchain adoption for promoting value innovation: a case of the halal industry

Purusottama,

Sunitiyoso,

Simatupang

2023

BPMJ

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PurposeBlockchain technology has encouraged more transparent transactions process through decentralized protocols and has identified multi-dimensional benefits. However, value innovation–based blockchain for the particular industry requires further elaboration since there appears to be a vague understanding. Therefore, this study aims to provide a profound perspective of value innovation based blockchain, which has the potential to be applied in the halal industry.Design/methodology/approachThis study developed a typology model that describes a profound understanding of blockchain adoption for value innovation. Empirical research was conducted using multiple case studies to justify the model. The case selection in this study was based on the halal industry in Indonesia. This study employed few sources to derive sufficient data through in-depth interviews, direct observations, and archival records. In particular, this study drew upon specific theories to elaborate on the blockchain-enable value innovation.FindingsA blockchain is identified as having the opportunity to promote value innovation in the halal industry through its features. This study defines a typology model of value innovation-based blockchain for the halal industry that takes place on a particular spectrum. The model built in this study classifies blockchain adoption for the halal industry from specific dimensions: the degree of blockchain-based system complexity and the intensity of value innovation. Then, this study finds that these cases have different classifications and are evenly distributed in the quadrants of the model.Originality/valueThe typology model in this study can be a reference for decision-making when considering blockchain to leverage a value innovation in particular systems. Although blockchain technology can potentially be applied in vast areas, the decision-makers should understand that technology adoption should provide distinct values to its stakeholders, notably in multi-dimensional areas such as the halal industry. Thus, this study contributes significantly to blockchain technology usage for the halal industry.

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