Legal Analysis of Smart Contract in Islamic Financial Industry
Uni Tsulasi Putri (a*), Sakti Oktasari (a)

Universitas Ahmad Dahlan

Abstract

The development of technology today is increasingly behind various human activities. One of the technological advancements that are currently being discussed is blockchain and smart contracts. In addition to cryptocurrency transactions or crypto asset trading, blockchain smart contracts are expected to be developed for certain transactions, including activities in the Islamic finance industry. This study aims to examine the validity of blockchain smart contracts based on the perspective of Islamic law and explore potential opportunities and challenges in using smart contracts for the Islamic finance industry. This type of research is normative juridical research. The data collection method used is a literature study. This study uses secondary data in the form of documents consisting of primary legal materials, secondary legal materials, and non-legal materials. The data were analyzed qualitatively and then presented descriptively. Smart contracts are possibly to be applied along with sharia principles, especially regarding the use of cryptocurrency as a condition for executing blockchain smart contracts that have underlying assets. It is necessary to conduct an in-depth analysis of the usage of crypto assets to support the execution of the smart contract.

Keywords: Smart contract- Blockchain- Islamic Finance- Crypto Asset

Topic: Law