Digital Asset/Property Legal protection in Sharia Banking Financing and its Role in Indonesian Economic Development

Yogi Muhammad Rahman, Renny Supriyatni Bachro, Etty H Djukardi, U Sudjana

Universitas Padjajaran, Bandung, Indonesia

Abstract:

Digital asset/property and Fintech in banking financial transactions have become significant recently in Indonesia, particularly in the context of Sharia/Islamic banking. The purpose of this study was to examine the digital assets guarantee available in the Islamic banking system in the context of Islamic banking and Islamic Financial Technology (Fintech). It also highlights the role of Sharia banking in developing the Indonesian economy. A normative and comparative judicial approach was applied to achieve the study objectives. In addition, descriptive methods of analysis and prescriptive analysis were used to analyze the data. It was found that the Islamic banking system used information and communication technology for executing various financial transactions. Results also showed that no general laws and regulations were available regarding protecting Islamic financial digital property rights and guaranteeing Fintech as per the Financial Services Authority (OJK) and Central Bank of Indonesia (BI). However, the Fatwa issued by the National Sharia Board of Indonesian Ulema (DSN MUI) presented necessary guidelines and legal protection for digital property and Fintech in Islamic banking. The study recommends that Islamic financial institutions should enhance their networks to benefit from digital technologies and attract most customers to this interest-free system.

Keyword:

Islamic/Sharia Banking Financing; Digital Asset/property Laws; Fintech; Indonesia