ABSTRACT
Blockchain is a technology based on a chain of interconnected blocks containing transaction history and user data. Blockchain permitted the creation of crypto-currency. Among its advantages: decentralization, transparency, and integrity. This technology has increased especially with the advent of covid19 with the accentuation of the wave of digitalization. Classic finance systems felt overwhelmed by events and tried to catch up with this new wave, by creating their crypto-currency, and embarking on this new world of digital finance where regulation and control are non-existent. Many central banks see the introduction of central bank digital currencies (MDBC) as a response to these challenges. But the phenomenal expansion of these crypto-currencies could present risks in terms of transmission of monetary policy, monetary creation, and financial stability. In this work, we will present the blockchain, the evolution of crypto-currency, and the reaction classic finance systems to this wave of digitalization of transactions, and especially to an absence of regulation. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
The Covid-19 pandemic is not yet over, and its impact has affected global economic and financial sectors. This represents a challenge for Islamic finance considered as an alternative finance especially after the advent of the 2009 global financial crisis. Islamic finance certainly has an important market share in crowdfunding and also in microfinance, and its role in the financing of SMEs all over the world is not negligible, and this financial crisis should therefore pose different challenges to Islamic finance. It requires a set of instruments specific to its category, and also needs new technologies (FinTech), strategies and financial services to cope with the possible phenomenon. Our work seeks to present how Islamic finance, with its specific financing instruments, can fight against the disastrous effects of this health crisis, in particular the instruments of Zakat, funding by Qardh-Al-Hassan and fundraising like the Sukuks and finally the importance of using a set of technologies, called Fintech, to build an alternative and sustainable financial system after Covid-19. Indeed, this health crisis should present different challenges to Islamic finance, which requires FinTech, in its new strategies and its financial services. Our Paper is structured as following, we start with a review of the literature, in a second part we present the covid-19 crisis and Islamic finance, the roles of Islamic products in the face of covid-19, and in a last part, the role of artificial intelligence in islamic finance. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
Blockchain is a technology based on a chain of interconnected blocks containing transaction history and user data. Blockchain permitted the creation of crypto-currency. Among its advantages: decentralization, transparency, and integrity. This technology has increased especially with the advent of covid19 with the accentuation of the wave of digitalization. Classic finance systems felt overwhelmed by events and tried to catch up with this new wave, by creating their crypto-currency, and embarking on this new world of digital finance where regulation and control are non-existent. Many central banks see the introduction of central bank digital currencies (MDBC) as a response to these challenges. But the phenomenal expansion of these crypto-currencies could present risks in terms of transmission of monetary policy, monetary creation, and financial stability. In this work, we will present the blockchain, the evolution of crypto-currency, and the reaction classic finance systems to this wave of digitalization of transactions, and especially to an absence of regulation. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
The Covid-19 pandemic is not yet over, and its impact has affected global economic and financial sectors. This represents a challenge for Islamic finance considered as an alternative finance especially after the advent of the 2009 global financial crisis. Islamic finance certainly has an important market share in crowdfunding and also in microfinance, and its role in the financing of SMEs all over the world is not negligible, and this financial crisis should therefore pose different challenges to Islamic finance. It requires a set of instruments specific to its category, and also needs new technologies (FinTech), strategies and financial services to cope with the possible phenomenon. Our work seeks to present how Islamic finance, with its specific financing instruments, can fight against the disastrous effects of this health crisis, in particular the instruments of Zakat, funding by Qardh-Al-Hassan and fundraising like the Sukuks and finally the importance of using a set of technologies, called Fintech, to build an alternative and sustainable financial system after Covid-19. Indeed, this health crisis should present different challenges to Islamic finance, which requires FinTech, in its new strategies and its financial services. Our Paper is structured as following, we start with a review of the literature, in a second part we present the covid-19 crisis and Islamic finance, the roles of Islamic products in the face of covid-19, and in a last part, the role of artificial intelligence in islamic finance. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.