The Role of Blockchain-Based Islamic Financial Instruments in Eliminating Riba from Financial Processes: A Case Study of an Iranian Financial Institution under Economic Sanctions

In Islamic finance, the prohibition of riba (usury or interest) constitutes one of its core ethical and legal principles. Traditional financial systems often face challenges in fully eliminating interest-based mechanisms due to their dependency on intermediaries and centralized structures. With the emergence of blockchain technology, new opportunities have arisen to design transparent, decentralized, and Sharia-compliant financial instruments. This study provides a comprehensive review of the role of blockchain-based Islamic financial instruments—including Smart Sukuk, Islamic stablecoins, and blockchain-based profit-sharing contracts—in reducing or eliminating riba from financial transactions. It also examines the potential of these instruments in the context of economic sanctions on Iran. Using a case study of an Iranian financial institution, the research explores how blockchain can facilitate financial inclusion, enhance transparency, and reduce reliance on interest-based financing. The findings highlight that blockchain-enabled Islamic finance can offer an alternative ethical financial system that not only aligns with Sharia principles but also provides resilience against sanctions and centralized financial control. However, regulatory challenges, technological barriers, and institutional readiness remain key obstacles to widespread implementation.

کلیدواژه ها:

Blockchain ، Islamic Finance ، Riba Elimination ، Smart Sukuk ، Stablecoin ، Sharia Compliance ، Iran ، Economic Sanctions