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Application of precious metal-backed cryptocurrency in Islamic finance

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dc.contributor.authorM. Kabir Hassan
dc.contributor.authorMustapha Abubakar
dc.contributor.authorMuhammad Auwalu Haruna
dc.contributor.authorAishath Muneeza
dc.date.accessioned2021-02-24T02:34:14Z
dc.date.available2021-02-24T02:34:14Z
dc.date.issued2021
dc.description.abstractFinance industry has become an essential part of the digital transformation in the perspective of Industry 4.0. The objective of this research is to find out the prospects of applying precious metal-backed cryptocurrency (PMBC) to Islamic finance by exploring its application to the different Islamic finance contracts for structuring Islamic finance products. A qualitative methodology is employed in conducting this research where relevant literature on the subject matter was reviewed. By using doctrinal approach, the paper presents Shari'ah compatibility of and issues in application of PMBC to Islamic finance contracts. The outcome of the research reveals that there is scope to use PMBC backed by gold to replace the function of fiat currency in Islamic finance contracts. However, there are specific Shari'ah rules applicable to each of the contract as derived from AAOIFI's Shari'ah standard No. 57 published in 2016. For the sustainable development and practical implementation of PMBC in Islamic finance, it is observed that there are certain inhibitions that need to be eliminated such as lack of political will in acknowledging it as a legal tender and development of an adequate and effective infrastructure with legal, regulatory and governance frameworks. It is anticipated that the outcome of this research will assist the policymakers and stakeholders of Islamic finance to prepare themselves to utilize PMBC in Islamic finance industry and to conduct further research in resolving the issues identified for adoption of PMBC backed by gold in a Shari'ah compliant way.en_US
dc.identifier.citationHassan, M. K., Muneeza, A., Abubakar, M., & Haruna, M. A. (2021). Application of precious metal-backed cryptocurrency in Islamic finance. Journal of Islamic Finance Accountancy, 5(1), 17-26.en_US
dc.identifier.issn2535-9746
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/3350
dc.languageEnglish
dc.language.isoengen_US
dc.publisherAAOFIen_US
dc.rights2021. AAOFI
dc.sourceSEDONA
dc.subjectCryptocurrencyen_US
dc.subjectGold standarden_US
dc.subjectIslamic financeen_US
dc.subjectPrecious metal-backed cryptocurrencyen_US
dc.subjectShari'ahen_US
dc.titleApplication of precious metal-backed cryptocurrency in Islamic finance
dc.typeJournal Articleen_US
dlc.maintopicFintech
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicFintech
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relation.isAuthorOfPublication.latestForDiscovery81014255-5cb8-46bc-ad81-bf6d8a3a0702
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