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A Framework for the Development of a National Crypto-Currency

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  • Adam Abdullah
  • Rizal Mohd Nor

Abstract

This paper seeks to provide a conceptual framework as to whether a central bank or a monetary authority should issue a crypto-currency given available technology and what are the consequences of doing so. Under the fiat standard the value and purchasing power of money has experienced an exponential decay, whilst prices have increased exponentially. Typically, a central bank is responsible for monetary and financial stability, including settlement and payment mechanisms. A proposed methodology is provided that involves both quantitative and qualitative analysis to measure the comparative monetary performance, stress testing and impact assessment of a new crypto-currency that includes backing by gold, silver and a basket of commodities. The scope of the proposed framework involves a monetary economic analysis, supported by a technological investigation, under the framework of Shari¡¯ah compliance, to explore an impact assessment of the adoption of a national crypto-currency. The significance of this study is that, it provides a framework for the development of a new national crypto-currency, which retains its¡¯ store of value in terms of monetary performance and price stability, that would also investigate whether it¡¯s implementation is viable.

Suggested Citation

  • Adam Abdullah & Rizal Mohd Nor, 2018. "A Framework for the Development of a National Crypto-Currency," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(9), pages 1-14, September.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:9:p:14
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    References listed on IDEAS

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    2. Bernard Lietaer, 2017. "A Possibly Sharīʿah-Compatible Global Currency to Stabilize the Monetary System عملة عالمية متوافقة مع الشريعة الإسلامية لتحقيق استقرار النظام النقدي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 47-58, July.
    3. Bonpasse, Morrison, 2009. "The single global currency - common cents for the world (2008 Edition)," MPRA Paper 14756, University Library of Munich, Germany.
    4. P. Carl Mullan, 2016. "A History of Digital Currency in the United States," Palgrave Advances in Economics of Innovation and Technology, Palgrave Macmillan, number 978-1-137-56870-0, December.
    5. Paul Davidson, 2002. "Financial Markets, Money and the Real World," Books, Edward Elgar Publishing, number 2467.
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    Cited by:

    1. Adam Abdullah, 2022. "Classical Islamic Perspectives on Monetary Theory وجهات نظر عُلماء المُسلمين القُدامى حول النظرية النقدية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 35(1), pages 3-22, January.
    2. Adam Abdullah, 2020. "Modern Monetary Theory or Islamic Monetary Theory of Value? Evidence from Malaysia النظرية النقدية الحديثة أم نظرية النقد الإسلامي للقيمة؟ أدلة من ماليزيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 25-46, July.
    3. Hina Binte Haq & Syed Taha Ali, 2018. "Navigating the Cryptocurrency Landscape: An Islamic Perspective," Papers 1811.05935, arXiv.org.

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    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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