From FinTech to Shariah-Compliant Distributed Ledgers: A Systematic Synthesis of Blockchain Adoption, Governance, and Socio-Technical Barriers in Islamic Financial Systems
Keywords:
blockchain, Islamic finance, financial inclusion, Shariah governance, fintech, transparency, digital transformationAbstract
This study examines the role of blockchain technology in Islamic finance, focusing on its implications for transparency, operational efficiency, financial inclusion, and governance within Shariah-compliant financial systems. The study investigates how blockchain aligns with Islamic financial principles and influences the development of more transparent, efficient, and inclusive financial systems, while identifying regulatory, governance, and adoption barriers affecting its implementation. Using a qualitative literature synthesis approach, the study analyzes prior empirical studies, systematic reviews, and conceptual analyses related to blockchain, Islamic fintech, and Shariah governance. The findings show that blockchain enhances transparency through immutable transaction records, improves operational efficiency via smart contract automation, and supports financial inclusion by reducing access barriers for underserved communities. However, its implementation depends on regulatory harmonization, Shariah governance standardization, digital literacy, and institutional readiness. The study also highlights that blockchain is compatible with Islamic financial principles such as justice, transparency, and asset-backing, although adoption remains uneven due to fragmented regulations and differing levels of technological maturity. The study concludes that blockchain has transformative potential for Islamic finance, but successful adoption requires collaboration among regulators, Shariah supervisory bodies, and financial institutions to ensure compliance, trust, and scalability. Future research should emphasize empirical validation of blockchain applications in Islamic financial ecosystems, particularly in Southeast Asia, to evaluate long-term sustainability and policy effectiveness.
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