Title:
GHARAR PERSPECTIVE ON ELECTRONIC MONEY: A LITERATURE REVIEW

Authors:
Denny Krisnawan Hartono, Indonesia

Abstract:
In today's rapidly evolving digital landscape, money as a means of payment has also undergone digitalization, transitioning from physical forms (coins and paper) to digital forms (electronic). Electronic money offers practicality in transactions using electronic devices such as smartphones. Electronic money is provided by both banking and non-bank financial institutions, including conventional and Sharia-compliant institutions. Consumers can use electronic money when they have savings in a financial institution. In the context of Sharia finance, efforts to adopt electronic money innovations following Sharia principles are becoming increasingly important. Electronic money contains elements of gharar in the Sharia perspective. Gharar is defined as deceiving people and making people interested in harming, one of which is exchanging an object with another party that contains unknown or hidden elements for purposes that are detrimental or dangerous. This study was conducted to assess the suitability of electronic money from a Sharia perspective through a literature review that examines the gharar perspective on electronic money. This type of research is classified as qualitative, with the research approach used being empirical, juridical, sociological, and muamalah. The results of the study show that electronic money from an Islamic legal perspective does not violate sharia principles because it does not cause gharar as long as its use is not deviant (does not contain maysir, does not encourage israf, and is not used for haram objects).