An Analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT) on the Use of Blockchain Technology in Islamic Banking in Indonesia

Abstract

The background of this research is to find out the use cases of blockchain technology and what types of blockchain which are suitable in the implementation of sharia banking institutions, as well as to find out the strengths, weaknesses, opportunities, and threats of the use of blockchain in Islamic banking, especially if it is applied in banking sharia in Indonesia. Qualitative descriptive research was used as research method in this research, with library research approach and some data were obtained from published reports and journals and they were also found on the internet based on the theme of research. If this study classified according to FC Dane theory, which also included in exploratory research, namely research that was conducted to find the cause and effect of an event or events. The object of this study was blockchain technology and the research subject was Islamic banking in Indonesia. The data analysis technique which was used here was the theory of Miles and Huberman method which consisted of data reduction, presentation of data, and conclusion. The results of this research showed that the blockchain with permissioned blockchain type and which was more specifically private permissioned blockchain was the right type to be applied in Islamic banking because it was in line with the regulations related to Islamic banking in Indonesia, with various consideration for applications in the form of smart contract, digital currency, cloud storage, remittances, and smart sukuk. Meanwhile, the scopes of division which implemented the applications were categorized based on 3 (three) fields, namely the payment sector, trade finance sector, and regulatory compliance. Based on various considerations in SWOT analysis method, then this technology was very possible to be implemented in sharia banking in Indonesia with the aim of achieving common interests.