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Islamic Finance and the Anthropology of Money: Exploring Ethical Alternatives to Interest-Based Systems

Islamic Finance and the Anthropology of Money: Exploring Ethical Alternatives to Interest-Based Systems
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Author(s): Early Ridho Kismawadi (IAIN Langsa, Indonesia), Razali Haron (International Islamic University, Malaysia)and Dede Ruslan (State University of Medan, Indonesia)
Copyright: 2026
Pages: 34
Source title: Examining Modern Economic Anthropology
Source Author(s)/Editor(s): Bryan Christiansen (Southern New Hampshire University, USA)and John D. Branch (University of Michigan, USA)
DOI: 10.4018/979-8-3373-1260-6.ch004

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Abstract

This paper explores the role of Islamic finance in challenging the dominant capitalist economic system by offering an alternative money ontology, which is based on the principles of social justice, wealth redistribution, and solidarity. This study examines how Islamic finance through mechanisms such as the prohibition of usury, qard hasan (interest-free loans), zakat (obligatory charity), and waqf redefines money not as a commodity for personal gain but as a tool for social responsibility and economic equity. In contrast to conventional finance which emphasizes the accumulation of individual wealth, Islamic finance emphasizes transactions related to real assets and productive activities, which aim to foster social welfare and community welfare. Through this analysis, we argue that Islamic finance presents a viable and ethical alternative to interest-based systems, offering a more equitable and sustainable approach to global economic development.

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