Blockchain Fintech and Islamic Finance Building the Future in the new Islamic Digital Economy 2nd Edition by Hazik Mohamed, Hassnian Ali 3110745143 9783110745146

Chapter 1 Introduction

The Rationale for Financial Disruption

Ethics and Technology

Digital Transformation and Development

Shifts in Customer Behavior

Changes in Engagement and Purchasing Behaviors

Structure of the Book

Chapter 2 Fintech – Definition, History, and Global Landscape

Introduction

Definition and Concept of Fintech

Evolution of Fintech

Fintech 1.0 (1866–1987)

Fintech 2.0 (1987–2008)

Fintech 3.0

Decentralized Finance (DeFi)

Global Landscape of Fintech

Fintech Investment

Fintech in Major Regions

Cryptocurrencies, Initial Coin Offerings (ICOs) and Securitized Token Offerings (STOs)

Cryptoexchanges

e-Wallets

ICOs versus STOs

Fiqh View on Coins and Tokens

Stablecoins and Central Bank-Issued Digital Currencies

Critical Importance of CyberSecurity

Chapter 3 Importance of Fintech and its Applications

Introduction

Financial Innovation within the Financial Services Industry Perspective

Payments Industry

Crowdfunding and P2P Lending

Neo-Banking

Asset under Management

InsurTech

Fintech Within the Technological Perspective

Blockchain and Its Applications

Cloud Computing

Big Data Analysis

Internet of Things

Robo-Advisors

Artificial Intelligence

Machine Learning and Deep Learning

Quantum Computing

Chapter 4 Emergence of Islamic Fintech and its Developments

Introduction

What Is Islamic Fintech?

Alignment between Islamic Finance and Fintech

Islam and Fintech in History

Islamic Fintech Developments Around the Globe

Global Islamic Fintech Landscape and Index

Islamic Countries’ Initiatives for Islamic Fintech

Islamic Republic of Pakistan (Islamabad, Lahore)

Kingdom of Bahrain (Manama)

Kingdom of Saudi Arabia (Jeddah, Riyadh)

People’s Republic of Bangladesh

Malaysia (Kuala Lumpur)

Republic of Indonesia (Bandung, Jakarta, Surabaya, and Yogyakarta)

Republic of Kazakhstan

Republic of Turkey (Istanbul)

Sultanate of Brunei (Brunei Darussalam)

United Arab Emirates (Dubai)

United Kingdom (London)

Obstacles for Islamic Fintech

Overcoming the Digital Divide in the Islamic Digital Economy

Implications for Islamic Digital Economy

Recommendations

Chapter 5 Blockchain and the Digital Economy

Introduction

Investments in Blockchain

Trends of the Sharing Economy and the Internet of Things Era

Open Platforms

Web and Mobile (Internet of Things Devices)

Cloud-Based (Internet of Things Infrastructure)

Clearing Trades and Settlement Transactions

Widespread Use of Artificial Intelligence

Regulatory Controls

Institutional Investment

Diversity and Choices

User Defined and User Experience

Trust in the New Sharing Economy

Trust and Reciprocity in the Economy

Trust and Trustworthiness (Reciprocity) in Islam

What is Blockchain?

Blockchain as Currency and Payments

Blockchains as Databases and Public Registries

Blockchain as Smart Contracts

Blockchain as Clearing and Settlement of Securities Transactions

Reduction of Fraud

Know Your Customer

Blockchain Infrastructure

Storage

Processing

Communications

Chapter 6 Expanded Use Cases of Blockchain

Smart Contracts in Islamic Transactions

How Does a Smart Contract Work?

Automation and Enforceability

Benefits and Evolution of Blockchain-Based Smart Contracts

Applications of Smart Contracts

Capital Markets and Investment Banking

Commercial and Retail Banking

Takaful

Islamic Trade Financing

Blockchain-Based Trade Finance

Enablers to Blockchain-Based Trade Financing

Blockchain-Based Smart Contracts

Instant Payment Structures

Current Challenges

Takaful (Islamic Insurance) on the Blocks

A Model for a Blockchain-Based Takaful

Fraud Detection and Risk Mitigation

Blockchain-Based Islamic Capital Markets

Payments and Settlements

Sukuk on the Blockchain

Distributed Ledger Technology and the Over-the-Counter Market

Media Rights, Intellectual Property, and Trademark Protection

Generating Advertising Revenues

Collections and Copyright Tracking

LegalTech and the Evolution of Legal Services

Legal Research

Contract Management

Intellectual Property Management

Automation and Analytics

eDiscovery

Chapter 7 Data Risk Management For Advanced Islamic Financial Institutions

Introduction

Consumer-Related Risks

Drivers for AI-Driven Risk Management

Risks in Data Sources and Big Data Processes

Risk Management in Various Financial Processes

Conclusion

Chapter 8 Evolution of Blockchain

Introduction

Transnational Justice Applications for the Economy

Coordination and Efficiency in Markets Through Consensus-Building

Pragmatic Approach to Technology Implementation

Get it Going First

Overcoming Limitations of Technology

Technical Challenges

Business Challenges

Government Regulatory Challenges

Privacy Challenges

Chapter 9 Response of Islamic Financial Institutions

Introduction

Important Success Factors in this Era of Digitization

Better Customer Experience with Customer Centricity

Agility and Scalability

Cybersecurity Management

Challenges for Islamic Financial institutions

Regulatory Issues

Comfort Zones and Stagnation in Management

Lack of Talent

Role of Academia and Islamic Fintech Education

Collaboration Models for Islamic Financial Institutions

Islamic Fintech Is Opportunity for Islamic Financial Institutions

Collaboration Is Better than Competition

Open Platforms

Open Banking or Financial Platforms

The Financial Institution Owns the Platform

Other Ownership of the Platform

Conclusion

Chapter 10 Cash Waqf (Endowments) Management Through the Blockchain

Introduction

The Different Use Cases for Blockchain to Enhance Governance

The Essentials to Understanding Waqf

Historical Examples of Waqf Institutions and Their Contributions

Waqf Institutions and Modernization

The Distinction of Cash Waqf from Other Waqf Models

The Blockchain Cash Waqf Model Development

What the Cash Waqf System Seeks to Solve

Benefits of a Blockchainized Waqf System

Conclusion

Chapter 11 A Unified Islamic Digital Currency – The Digital Dinar

Introduction

Why a Unified Currency is Important for the Muslim World

Considerations for a Unified Currency for Islamic Countries

Evolution of Digital Currencies

The Central Bank-issued Digital Currency (CBDC)

Proposed Constructs For The Unified Islamic Digital Currency (DIGITAL DINAR)

The Aggregated Sovereign Currencies Construct

The Islamic Central Bank (ICB)

The Basket of Commodities Construct

Commodity Reserve Division (CRD)

The Fixed Price Schedule

Parameters of the Price Schedule

Benefits to the Digital Dinar Implementation

Conclusion

Index