INTEGRATION OF BLOCKCHAIN TECHNOLOGY IN THE DEVELOPMENT OF ISLAMIC FINANCIAL SYSTEMS

Abstract

This study aims to analyze the potential of integrating blockchain technology into the development of Islamic financial systems. The research method used a qualitative approach through library research with descriptive-analytical analysis. The results of indicate that blockchain technology can enhance transparency, accountability, and trust in Islamic financial transactions. Furthermore, the use of smart contracts allows transactions to be executed automatically without intermediaries, thereby reducing operational costs and improving system efficiency. The implementation of blockchain is also considered capable of supporting Islamic principles such as fairness, openness, and integrity in financial activities. However, the application of this technology still faces several challenges, such as regulations issues, technological infrastructure readiness, and the level of digital literacy among the public. Therefore, collaboration between financial institutions, regulators, and technology developers is required to optimize the implementation of blockchain in Islamic financial systems in the future.