Cryptocurrencies and Their Permissibility in Islamic Finance

CRYPTOCURRENCIES AND THEIR
PERMISSIBILITY IN ISLAMIC FINANCE
(A Research on “Haram” and “Halal” in Adoption of
Blockchain Technology)
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Word Count: 1000
Reference Style: Harvard

CRYPTOCURRENCIES AND THEIR PERMISSIBILITY IN ISLAMIC FINANCE
Abstract
Cryptocurrencies have become one of the major concerns for the Islamic finance sector. The
first chapter has been associated with the research background, rationale, aim and objectives.
In addition, hypotheses development and structure of research have taken place in the same
chapter. The second chapter is based on the basic conception of cryptocurrencies and
permissibility of cryptocurrencies in Islamic Finance. Apart from that, Theory of Digital
Economy and factors of cryptocurrencies that impact on Islamic Finance have been discussed.
The third chapter is indicative of the methods and designs. Positivism philosophy, descriptive
design, deductive approach, primary technique, and both qualitative and quantitative data
have been specified for the current research.
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CRYPTOCURRENCIES AND THEIR PERMISSIBILITY IN ISLAMIC FINANCE
Table of Contents
Chapter 1: Introduction..............................................................................................................4
1.1 Research background........................................................................................................4
1.2 Rationale of research........................................................................................................4
1.3 Research aim....................................................................................................................4
1.4 Research objectives..........................................................................................................4
1.5 Research questions...........................................................................................................5
1.6 Research hypotheses.........................................................................................................5
Chapter 2: Literature Review.....................................................................................................6
2.1 Basic conception of cryptocurrencies...............................................................................6
2.2 Basic idea on the permissibility of cryptocurrencies in Islamic Finance.........................6
2.3 Theoretical framework regarding cryptocurrencies.........................................................6
2.3.1 Theory of Digital Economy.......................................................................................6
2.4 Factors of cryptocurrencies impact on Islamic Finance...................................................7
Chapter 3: Research Methodology.............................................................................................8
3.1 Research Philosophy........................................................................................................8
3.2 Research Approach...........................................................................................................8
3.3 Research Design...............................................................................................................8
3.4 Research Technique..........................................................................................................8
3.5 Data Collection Technique...............................................................................................8
3.6 Sample size.......................................................................................................................8
3.7 Sampling method..............................................................................................................9
3.8 Data analysis strategy.......................................................................................................9
3.9 Ethical consideration........................................................................................................9
3.10 Summary.........................................................................................................................9
References................................................................................................................................10
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CRYPTOCURRENCIES AND THEIR PERMISSIBILITY IN ISLAMIC FINANCE
Chapter 1: Introduction
1.1 Research background
Cryptocurrencies play a significant role in dragging the digital economy onto the next level of
financial transactions. In order to have numerous benefits in Sharia finance, Islamic banks
have started adopting cryptocurrencies, and one of them is Bitcoin. The core purpose of the
financial institutions is to make complex financing term easily and taking care of transactions
and Sharia-compliant insurance (Yakubowski, 2019).
1.2 Rationale of research
What is the issue?
In case of adoption of cryptocurrencies in the Islamic banks, there is a questionable situation
regarding their permissibility.
Why is it an issue?
The permissibility issue is due to the Sharia law. The Islamic communities believe that usage
of cryptocurrencies is illegal under this law (World Blockchain Summit, 2019).
Why is it an issue now?
In turn of the legal issue of cryptocurrencies as per Sharia law, the adoption rate of this digital
economy is decreasing in the Islamic financial institutions. As a result of it, the Islamic banks
face difficulties regarding complex financial activities (Gulf-Times, 2019).
What light does it shed on the research?
With the help of this research, the not permissibility of cryptocurrencies is going to be
portrayed significantly.
1.3 Research aim
The research aims to investigate the role of cryptocurrencies and their permissibility in
Islamic Finance.
1.4 Research objectives
The objectives of the research can be listed as follows: To identify the conception of cryptocurrencies To recognise the permissibility of cryptocurrencies in Islamic Finance To find out the theoretical framework related to the digital economy
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