Affectors on the adoption of cryptocurrencies and digital assets in Islamic finance

Salehhudin, Noorhidayah and Ahmad Suki, Amirah and Suib, Fatin Husna and Ramly, Zulkufly (2024) Affectors on the adoption of cryptocurrencies and digital assets in Islamic finance. Pakistan Journal of Life and Social Sciences, 22 (2). pp. 11722-11735. ISSN 1727-4915 E-ISSN 2221-7630

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Abstract

This study delves into the factors that drive the adoption of cryptocurrencies and digital assets within the Islamic finance sector while emphasizing the transformative potential of these technologies for Islamic online payments and investment avenues. The research highlights the essential need for adherence to Shariah principles. Using the Diffusion of Innovations Theory, the study analyzes criteria such as relative advantage, compliance with Islamic principles, and observability of advantages. Gathering 153 valid responses through a purposive sampling approach, the study employs exploratory factor analysis and multiple regression analysis to identify four significant factors influencing the adoption of cryptocurrencies and digital assets in Islamic finance: market acceptance, Shariah compliance, economic stability, and technological security. The model accounts for 50% of the variance in adoption (R² = 0.500). The study concludes by emphasizing the significance of establishing Shariah-compliant standards, creating a favorable economic and legal environment, monitoring the effects on economic stability, and integrating robust security measures to stimulate the widespread adoption of digital innovations within the Islamic financial sector.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Cryptocurrencies, Digital Asset, Market Acceptance, Shariah Compliance
Subjects:	H Social Sciences > HJ Public Finance > HJ1438 Public Finance In Islam
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Dr Fatin Husna Suib
Date Deposited:	20 Jan 2025 16:34
Last Modified:	22 Jan 2025 09:59
URI:	http://irep.iium.edu.my/id/eprint/118298

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