Model Dinar and Dirham Digital Currency for Islamic Commercial Transaction

Abstract

Cryptocurrency is predicted to have a bright future as a new form of money becomes more popu-   lar. This research analyses the potential disruption of cryptocurrency from an Islamic perspective. However, this promising Islamic cryptocurrency has shifted from non-asset backed to physical asset- backed of cryptocurrencies. We proposed design implementation the most straightforward way of the transaction with cashless wireless payments using one device through Distributed Ledger Technology (DLT) of blockchain technology. We use digital currency with underlying asset Dinar and Dirham for a commercial transaction. However, the disruption of cryptocurrencies may adapt Dinar and Dirham tokenization in exchanging services in the conversion of fiat money into cryptocurrency that complies with Islamic. Except comply with Islam, it also needs a Special Purpose Vehicle (SPV) as a party who guarantees the existence of assets. It concludes that the intermediation function of third parties such a bank will be disrupted in the profound shift of digital money based on Islamic cryptocurrency.