Cryptocurrency and Islamic Finance

Alam, Nafis; Gupta, Lokesh; Zameni, Abdolhossein

doi:10.1007/978-3-030-24666-2_6

Cited by 14 publications

(11 citation statements)

References 1 publication

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“…Gold-backed cryptocurrencies have been gaining interest especially during the current COVID-19 crisis as they are digital assets whose value is tied 100% to the value of Gold hence they combine the features of Gold and stablecoins. Yet, so far Gold-backed cryptocurrencies have mainly been studied in the context of Islamic finance ( Alam et al., 2019 , Aloui et al., 2020 ). This study is therefore aimed at investigating the performance of Gold-backed cryptocurrencies, in terms of the returns and volatility during the COVID-19 crisis and in particular, during the bear market of 2020 which occurred within the COVID-19 crisis period.…”

Section: Introductionmentioning

confidence: 99%

Performance of gold-backed cryptocurrencies during the COVID-19 crisis

Wasiuzzaman

Rahman

2021

Finance Research Letters

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Section: Introductionmentioning

confidence: 99%

Performance of gold-backed cryptocurrencies during the COVID-19 crisis

Wasiuzzaman

Rahman

2021

Finance Research Letters

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“…In this regard, the correlations between Bitcoin and equities were found to rely on the investment holding periods (Bouri et al , 2018). This may be because Shariah-compliant investors have begun investing more in Bitcoin (Hassan et al , 2020; Alam et al , 2019). Related to this, it is worth mentioning that Shariah-compliant investors can include Bitcoin in their portfolio since Bitcoin has been approved as a Shariah-complaint asset in 2014 by the Monzer Kahf’s rulings on acceptability of cryptocurrency, which motivated The Fiqh Council of North America and others Shariah scholars in Asia and United Arab Emirates to offer the same Fatwas (Uddin et al , 2020).…”

Section: Findings and Analysismentioning

confidence: 99%

Asymmetric effects of economic policy uncertainty on Bitcoin’s hedging power

Ali

Schınckus²,

Uddin³

et al. 2022

SEF

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Purpose Even though Bitcoin has been often labelled as a safe haven asset class in the literature, the influence of economic policy uncertainty (EPU) on the diversifying opportunities offered by Bitcoin in relation to other assets needs to be investigated. This paper aims to investigate how the EPU affects diversification of commodity, conventional, Islamic and sustainable equity returns in relation to its impact on Bitcoin returns. Design/methodology/approach The authors use advanced time-series econometrics, namely, multivariate generalized autoregressive conditional heteroscedastic-dynamic conditional correlation and continuous wavelet transformation, for the analysis of the daily returns for the aforementioned assets between 01 August 2011 and 01 September 2019. Findings First, the authors found a strong evidence of Bitcoin’s mean reverting trend in the long run while its volatility has decreased significantly since 2013. After separating the EPU into two regimes (high and low), diversification opportunities with Bitcoin seems to disappear in a high EPU period, while the hedging opportunity tends to prevail in a low EPU period for all classes of assets. Importantly, the findings indicate that Bitcoin offers short-term diversification for sustainable and Islamic equity as well as energy stocks during a low uncertainty period. Consequently, in relation to the policy uncertainty, Bitcoin provides similar hedging opportunities than commodities like Gold and Silver. Overall, the study shows that EPU is remarkably important in explaining the average portfolio returns of Bitcoin, suggesting that this indicator can be perceived as a decent explanatory factor for portfolio diversification. Originality/value The study significantly extends the empirical literature of Bitcoin’s portfolio diversification by taking EPU into consideration. To the best of authors’ knowledge, this is one of the few studies to investigate the asymmetric effects of US EPU on Bitcoin’s hedging capabilities by taking into account major conventional equity, sustainable equity, Islamic equity, gold, silver and oil.

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“…(E. A. Firmansyah & Anwar, 2019;(Rabbani et al, 2020;Alam et al, 2019b;(Bromberg et al, 2017). Other studies (H. B.…”

Section: Future Of Fintechmentioning

confidence: 99%

A Slanted View on the Future of Islamic Fintech and Conventional Fintech in South and Southeast Asian Countries

Mansur¹,

Samsuri

Nurhayati

et al. 2022

elbarka

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Introduction/Main Objectives: This study reviews the presence of Fintech in South and Southeast Asian countries through several categories. Background Problems: Many people doubt the presence of Fintech in South Asia and Southeast Asia as part of a developing country with all its limitations, especially Sharia Fintech. Novelty: Developing Sharia Fintech in South Asian and Southeast Asian countries, which have not spread evenly before. Research Methods: Qualitatively using GFD (Global Findex Database) data collected in 2021, which was then elaborated with 115 research studies (50 from Scopus, 24 from Research Gate, 21 from Google Scholars and 20 from other sources). Finding/Results: The presence of Fintech is more likely to develop rapidly in the Southeast Asia region, not so in the South Asian region. The lneeds of each region are different. It is different if developed by Sharia Fintech (I-Fintech/Islamic Financial Technology). Its potential is almost acceptable in all regions, including in countries that are sensitive to religious issues. Conclusion: It is not only Fintech that is the future of cutting-edge banking, but also the presence of I-Fintech (Islamic Financial Technology) which empirically opens up great opportunities and repositions mainstream financial institutions into traditional banking, including Islamic banking. However, the presence of Fintech and I-Fintech still requires the support of local government policies and the wider community, Muslims and non-Muslims in any part of the world.

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Cryptocurrency and Islamic Finance

Cited by 14 publications

References 1 publication

Performance of gold-backed cryptocurrencies during the COVID-19 crisis

Performance of gold-backed cryptocurrencies during the COVID-19 crisis

Asymmetric effects of economic policy uncertainty on Bitcoin’s hedging power

A Slanted View on the Future of Islamic Fintech and Conventional Fintech in South and Southeast Asian Countries

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