An Integrative Model for Sharia-Based Cryptocurrency Development in Indonesia

Abstract

The development of cryptocurrency as part of the digital economic transformation has brought significant changes to the global financial system, including in Indonesia. However, its implementation remains controversial from a sharia perspective, particularly regarding elements of usury (riba), gharar (gharar), and maysir (gambling). This study aims to formulate an integrative model for the development of sharia-compliant cryptocurrencies that aligns with the principles of Islamic jurisprudence (fiqh) and the regulatory framework in Indonesia. The research method used is a qualitative approach, incorporating literature studies and conceptual analysis of regulations, Islamic economic theory, and the development of blockchain technology. The results indicate that the development of sharia-compliant cryptocurrencies requires the integration of four main aspects: law and sharia, economics, technology, and institutions. The proposed integrative model emphasizes the use of underlying assets, the transparent implementation of blockchain technology, and oversight by sharia institutions to ensure compliance with Islamic principles. Furthermore, this model also considers national regulatory aspects to create legal certainty and protect users. This study concludes that sharia-compliant cryptocurrencies have significant potential to support financial inclusion and strengthen the sharia economy in Indonesia. However, their implementation requires synergy between regulators, Islamic scholars, academics, and industry players.