Developing a conceptual model of shari'ah oriented precious metal backed cryptocurrency for Malaysia : issues and perceptions /
Under the fiat standard, money is no longer backed by any assets, but rather it is backed by debt. The implication of such system is an excess of money supply as a result of aggregate deposit and loan interest in relation to demand. The effect is a decline in the value of money which leads to an exp...
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| Format: | Thesis |
| Language: | English |
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| Online Access: | Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library. |
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| Summary: | Under the fiat standard, money is no longer backed by any assets, but rather it is backed by debt. The implication of such system is an excess of money supply as a result of aggregate deposit and loan interest in relation to demand. The effect is a decline in the value of money which leads to an exponential increase in prices over long time. Nevertheless, the limitations of interest-based monetary system have driven critics to propose alternative methods to transfer value by replicating precious metal electronically, especially after the emergence of cryptocurrencies. Restoring the value of money has long been a controversial topic, hampered in part by lack of theoretical and empirical evidences. Therefore, the objectives of this thesis are first to develop Sharīʻah oriented precious metal backed cryptocurrency (PMBC). Second, to investigate perceptions of Sharīʻah advisors and financial experts on Sharīʻah oriented PMBC. Third, to investigate potential users' tendency to adopt Sharīʻah oriented PMBC. To achieve the research objectives, critical realism has been adopted as a philosophical overview. In methodology, to achieve objective one, general product development process was adopted. For investigating the Sharīʻah advisors' and financial experts' perceptions, qualitative method using semi-structured interview, based on saturation technique, was adopted. Finally, the study adopted quantitative method using 92 administered questionnaires based on innovation diffusion theory for investigating the potential users' perceptions. The result of this research was to introduce a Sharīʻah oriented PMBC where the description and the modus operandi of the PMBC were presented. Overall, it was found that all the resources needed to develop and implement PMBC are already available. The results from Sharīʻah advisors and financial experts indicated that the informants have differences of views on the assets-backed money, but they agreed that it ensures stability of money, and adding the cryptocurrency technology was found to be desirable and recommended. The results also found that PMBC would be subjected to financial regulation challenges, and using blockchain technology will increase the transparency. The informants agreed that PMBC is closer to Maqāsid al-Sharīʻah and there is some form of justice and equality compared to current interest-based financial system. Therefore, the informants recommended the implementation of PMBC. The main findings from potential users indicated that six out of eight constructs specified to influence the adoption of PMBC were found to be statistically significant. These factors are relative advantage, compatibility, anxiety, observability, facilitating condition and trust. However, the constructs trialability and convertibility were not statistically significant in this study. Overall, 54.5% of the variation in adoption of PMBC can be explained by the structure model provided by this research which indicates large effect. It was also found that the majority of the respondents (63.55%) are willing to adopt PMBC in their future transaction. As a pioneering study, it has succeeded in developing and introducing Sharīʻah oriented PMBC. It also contributes to existing knowledge by formally documenting the issues related to PMBC from the perspective of stakeholders namely Sharīʻah advisors, financial experts and potential users. |
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| Physical Description: | xviii, 307 leaves : illustrations ; 30cm. |
| Bibliography: | Includes bibliographical references (leaves 263-285). |