THE ADVANTAGES AND CHALLENGES OF IMPLEMENTING SUKUK THROUGH BLOCKCHAIN TECHNOLOGY
Keywords:
sukuk, blockchain, smart sukuk, smart contract, cryptocurrency
Abstract
Financial instruments must be able to adapt quickly in the 4.0 era. One of the Islamic financial innovations highlighted at this time is the application of blockchain technology-based sukuk. This study aims to determine specifically the advantages of applying sukuk through blockchain technology and to scale the point of view regarding the challenges faced in applying sukuk through blockchain technology. This research uses a qualitative approach. The data collection technique used is literature study by collecting data from previous studies in the form of documentation of articles, journals or books as well as publication data from other parties. The data analysis techniques used were data reduction, data presentation, and conclusion drawing. The results show that sukuk can get many benefits from blockchain technology. Although blockchain has its advantages, there are risks and challenges that need to be resolved. In responding to this challenge, it is necessary to have a harmonious synergy among all stakeholders, from Syari'ah scholars, academics, to regulators and industry
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References
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Ausop, Asep Zaenal, and Elsa Silvia Nur Aulia. “Teknologi Cryptocurrency Bitcoin Untuk Investasi Dan Transaksi Bisnis Menurut Syariat Islam.” Jurnal Sosioteknologi 17, no. 1 (2018).
Beik, Irfan Syauqi. “Memperkuat Peran Sukuk Negara Dalam Pembangunan Ekonomi Indonesia.” Jurnal Ekonomi Islam Al-Infaq 2, no. 2 (2011).
Blossom Finance. “Invest in Changing Lives Good Return: Great Impact.” Last modified 2019. Accessed April 6, 2021. https://blossomfinance.com/.
———. “World’s First Primary Sukuk Issuance on Blockchain Closes.” Https://Blossomfinance.Com/. Last modified 2019. Accessed April 6, 2021. https://blossomfinance.com/posts/worlds-first-primary-sukuk-issuance-on-blockchain-closes.
Chiu, Jonathan, and Thorsten V. Koeppl. “Blockchain-Based Settlement for Asset Trading.” Review of Financial Studies 32, no. 5 (2019): 1716–1753.
Deshpande, Advait, Katherine Stewart, Louise Lepetit, and Salil Gunashekar. “Distributed Ledger Technologies/Blockchain: Challenges, Opportunities and the Prospects for Standards.” British Standards Institution, no. May (2017). https://www.rand.org/pubs/external_publications/EP67133.html.
Dewan Syariah Nasional. Fatwa DSN (Dewan Syariah Nasional) MUI No. 32/DSN-MUI/IX/2002 Tentang Obligasi Syariah (Sukuk). Jakarta: Majelis Ulama Indonesia, 2002.
Evans, Charles W. “Bitcoin in Islamic Banking and Finance.” Journal of Islamic Banking and Finance 3, no. 1 (2015): 1–11.
Ghanbary, Hossein. “Combination SWOT-AHP Analysis for Using Blockchain in E-Commerce.” Journal of Economics and Administrative Sciences 3, no. 1 (2021).
Hamza, Osama. “Smart Sukuk Structure from Sharia Perspective and Financing Benefits: Proposed Application of Smart Sukuk through Blockchain Technology in Islamic Banks within Turkey.” EJIF – European Journal of Islamic Finance (2020): 1–8. https://www.ojs.unito.it/index.php/EJIF/article/view/3983.
J.Martin, Mathew. “Halal & Ethical Investments Using Sukuk, Good Returns, Great Impact.” Blossom Finance. Accessed April 6, 2021. https://docsend.com/view/j7jczhp.
Jibrel. “Sukuk Bonds on the Blockchain.” Medium.Com. Last modified 2019. Accessed May 24, 2021. https://medium.com/jibrel-network/sukuk-bonds-on-the-blockchain-9b5bf02778d0.
Khan, N, B Kchouri, N A Yatoo, Z Kräussl, A Patel, and ... “Tokenization of Sukuk: Ethereum Case Study.” Global Finance Journal (2020). https://www.sciencedirect.com/science/article/pii/S1044028319303552.
Kunhibava, Sherin, Zakariya Mustapha, Aishath Muneeza, Auwal Adam Sa’ad, and Mohammad Ershadul Karim. “ Ṣukūk on Blockchain: A Legal, Regulatory and Sharī’ah Review .” ISRA International Journal of Islamic Finance ahead-of-p, no. ahead-of-print (2021).
Lemieux, Victoria L. “Blockchain Recordkeeping: A Swot Analysis.” Information Management (2017).
Ministry of Finance. Blending Islamic Finance and Impact Investing for The SDGs. Jakarta: Fiscal Policy Agency, Minister of Finance, The Republic of Indonesia, 2019.
Mounira, Babas. “Blockchain Technology Applications in the Islamic Financial Industry -The Smart Sukuk of Blossom Finance’s Platform in Indonesia Model-.” Economic Sciences, Management and Commercial Sciences Review 13, no. 2 (2020): 309–325.
Nakamoto, Satoshi. “Bitcoin: A Peer-to-Peer Electronic Cash System.” www.bitcoin.org (2008).
Niranjanamurthy, M., B. N. Nithya, and S. Jagannatha. “Analysis of Blockchain Technology: Pros, Cons and SWOT.” Cluster Computing 22, no. 2 (2019): 14743–14757. https://doi.org/10.1007/s10586-018-2387-5.
Nwagwu, Urenna. “A SWOT Analysis on the Use of Blockchain in Supply Chains,” 2020. https://soar.wichita.edu/handle/10057/18846.
Oh, JaeShup, and Ilho Shong. “A Case Study on Business Model Innovations Using Blockchain: Focusing on Financial Institutions.” Asia Pacific Journal of Innovation and Entrepreneurship 11, no. 3 (2017): 335–344.
Osmani, Mohamad, Ramzi El-Haddadeh, Nitham Hindi, Marijn Janssen, and Vishanth Weerakkody. “Blockchain for next Generation Services in Banking and Finance: Cost, Benefit, Risk and Opportunity Analysis.” Journal of Enterprise Information Management (2020).
Pemerintah Republik Indonesia. Undang-Undang Republik Indonesia Nomor.19 Tahun 2008 Tentang Surat Berharga Syariah Negara, 2008.
Rahmawati, Miftahul, and Hendri Tanjung. “Analisis Sukuk Negara Sebagai Alternatif Pembiayaan Anggaran Pendapatan Dan Belanja Negara.” An-Nisbah: Jurnal Ekonomi Syariah 5, no. 1 (2018): 338–357.
Schwab, Klaus. “The Fourth Industrial Revolution: What It Means and How to Respond.” World Economic Forum. Last modified 2016. Accessed April 7, 2021. https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/.
Securities Commission Malaysia. Capital Market Architecture Blueprint in a Decentralised World, 2018.
Tasnia, Mashiyat, Muhammad Mustapha, and Mohammad Hassan. “Critical Assessment of the Legal Recourse for the Case of Sukuk Default for the Asset-Backed Sukuk and Asset-Based Sukuk Structures.” European Journal of Islamic Finance, no. 7 (2017).
Tran, Thien Vu, and Hue Hong Hoang Trinh. “Blockchain Technology for Sustainable Supply Chains of Agri-Food in Vietnam: A SWOT Analysis.” Science & Technology Development Journal - Economics - Law and Management 5, no. 1 (2021): first.
Vilkov, A., and G. Tian. “Blockchain as a Solution to the Problem of Illegal Timber Trade between Russia and China: SWOT Analysis.” International Forestry Review 21, no. 3 (2019): 385–400.
Whitehead, Ricard. “Islamic Microfinance Start-up Sets up Sukuk on Blockchain, Targets SMEs, Social Impact Projects.” Salaam Gateway - Global Islamic Economy Gateway. Last modified 2018. Accessed April 6, 2021. https://www.salaamgateway.com/story/islamic-microfinance-start-up-sets-up-sukuk-on-blockchain-targets-smes-social-impact-projects.
Published
2021-10-28
How to Cite
Iman, A., & Arifin, S. (2021). THE ADVANTAGES AND CHALLENGES OF IMPLEMENTING SUKUK THROUGH BLOCKCHAIN TECHNOLOGY. An-Nisbah: Jurnal Ekonomi Syariah, 8(2), 247 - 270. https://doi.org/10.21274/an.v8i2.4665
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