Gharar-Free ReBittance: Powered by Blockchain

ReBittance can be defined as remittance backed by Blockchain technology instead of a traditional model based on a centralized network. Blockchain technology facilitates the use of digital assets such as cryptocurrency to process payments using a unique, secured shared electronic ledger. This unique feature of blockchain technology eliminates gharar (uncertainty) and makes transaction processing cost-effective (low fees—ujr) and facilitates financial inclusion for unbanked such as migrant worker remittance to their home country. Another advantage is impenetrability, making it difficult to compromise as everything is tracked on a ledger, which stops people from spoofing it or creating fake data. Blockchain strengthens the payment ecosystem by providing limitless opportunities in the usage of digital assets, payments, remittance and implementation of smart contracts. Islamic Banks globally are embracing digitizing the user experience for banking to achieve accuracy, security, speed in-process and cheaper processing cost for remittance, that is, P2P (Peer to Peer), B2B (Business to Business), B2I (Business to Individual) and eCommerce transactions. The objective is to achieve low-cost remittance and payment intermediation ecosystem using open and transparent blockchain technology. This chapter analyses the traditional remittance, rebittance platform, perform a comparison with traditional models and models practised for processing remittance transactions in compliance with Shariah (Islamic Law) principles. It also provides a viewpoint on opportunities available for Islamic banks and FinTech companies to explore and embrace.