While I have previously written about the potential of asset tokenication in Islamic finance in a more general sense, I believe this fusion can specifically contribute to the United Nations' sustainable development goals (SDGs). As the founder of an investment company that prioritizes both ethics and blockchain integration, this is an especially relevant topic for me.
Islamic Finance And Blockchain
Islamic finance as a whole emphasizes risk-sharing, asset-backed transactions and ethical investing. These all easily align with sustainable development. Because of the nature of this form of finance, I believe that advances in this sector can help address global challenges like poverty, inequality and environmental degradation.As a part of these advances, blockchain technology can amplify the impact of Islamic finance on sustainable development. By using blockchain, we can revolutionize financial transactions, democratize access to financial services and foster accountability and trust in the financial ecosystem.
Harnessing Blockchain For Sustainable Development In Islamic Finance
There are a few ways I see blockchain transforming the Islamic finance sector to promote sustainable development:• Microfinance and financial inclusion. I see blockchain technology facilitating Shariah-compliant microfinance services. Tokenization of microfinance transactions can lower transaction costs, increase efficiency and broaden financial services' reach.
• Green sukuk. Blockchain can support the issuance and trading of green sukuk, Islamic bonds for environmentally friendly projects. When these bonds are tokenized it can enhance their liquidity, making them more attractive to investors and driving increased funding for sustainable development initiatives.
Continue reading: https://www.forbes.com/sites/forbes...lockchain-for-sustainability/?sh=3af7db7f54ba