Islamic Fintech and Central Bank Digital Currencies: Catalyzing the Growth of a Sustainable Financial Ecosystem in the GCC Countries

This study aims to explore the convergence of Fintech and Central Bank Digital Currencies (CBDCs) to illustrate how the collaboration of these two domains can catalyze the growth of a sustainable financial ecosystem. Through a comprehensive analysis of the critical characteristics of Islamic Fintech and CBDCs, this study explores their potential convergence to preserve a resilient, inclusive, and sustainable financial system. The chapter further examines existing and emerging use cases, regulatory frameworks, and the roles of different stakeholders in developing and implementing CBDCs within the Islamic Fintech context. This research highlights the need for strong collaboration among regulators, financial institutions, and technology providers. This collaboration is needed to leverage the disruptive potential of CBDCs and Islamic Fintech, bringing societal and environmental benefits and contributing to the development of sustainable financial ecosystems. This study provides novel insights into how synergy between these two domains can drive the growth of a sustainable financial ecosystem. While the study provides comprehensive insights, it acknowledges the dynamic nature of Islamic Fintech and CBDCs, indicating potential changes in regulatory frameworks, technological developments, and stakeholder roles. The findings of this study are relevant for policymakers, regulatory authorities, financial institutions, and technology providers. This study provides a roadmap for leveraging the potential of CBDCs and Islamic Fintech to increase sustainable financial ecosystems.