Central Bank Digital Currencies (CBDCs) and the Future of Islamic Monetary Systems: Shariah and Policy Perspectives
Keywords:
Central Bank Digital Currency (CBDC),, Islamic Monetary System, Maqasid Al-Shariah, Shariah Compliance,, Islamic Finance, Monetary Policy, Financial Inclusion,, Digital EconomyAbstract
This study examines the potential role of Central Bank Digital Currencies (CBDCs) in shaping the future of Islamic monetary systems, emphasizing Shariah compliance and policy implications. Employing a qualitative descriptive-analytical approach, the research integrates doctrinal Islamic legal reasoning with empirical data obtained from semi-structured interviews with Shariah scholars, central bank policymakers, and fintech regulators. The findings indicate that CBDCs can promote the objectives of maqasid al-shariah including justice (adl), preservation of wealth (hifz al-mal), and social welfare (maslahah) by enhancing transparency, financial inclusion, and monetary stability. However, concerns persist regarding data privacy, ethical governance, and the potential replication of riba and gharar-based practices if robust Shariah oversight is not established. The study underscores the necessity of a comprehensive Shariah governance framework and ethical regulatory standards to ensure that CBDC design and implementation align with Islamic moral and economic principles. Overall, the research concludes that a Shariah-compliant CBDC could serve as a bridge between technological innovation and Islamic finance, fostering a more equitable, transparent, and sustainable digital economy that upholds the ethical spirit of Islam.
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