Blockchain Technologies and Cryptocurrencies​

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Technology and Innovation".

Deadline for manuscript submissions: 1 June 2024 | Viewed by 15146

Special Issue Editors


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Guest Editor
Islamic Finance and Economy Program, College of Islamic Studies, Qatar Foundation, Hamad Bin Khalifa University, Doha 34110, Qatar
Interests: fintech; cryptocurrencies; blockchain; macroeconomics; banking; islamic finance
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Guest Editor
Department of Economics, Copenhagen Business School, Porcelænshaven 16A, 2000 Frederiksberg, Denmark
Interests: cryptocurrencies; empirical asset pricing; forecasting; sentiment analysis

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Guest Editor
Department of Management, Bogazici University, Bebek, Istanbul 34684, Turkey
Interests: FinTech; blockchain; cryptocurrencies; machine learning applications
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

This Special Issue is focused on “Blockchain Technologies and Cryptocurrencies”.

Due to their relative novelty as an asset class, cryptocurrencies lack well-established methods for either valuing themselves or understanding how their prices are determined. However, digital assets are similar to traditional ones and may even be based on the same underlying principles. The price of a cryptocurrency may rise or fall based on the quality of the distributed network upon which it is built, similar to the equity valuations of social media companies such as Facebook are related to the value of their proprietary networks. Blockchain technologies, such as Bitcoin and Ethereum, make it possible for two people to exchange value without the intervention of a third party that can be trusted. How does sentiment impact the success of blockchain startups? Is there any predictive power of social media for predicting cryptocurrency prices? What drives cryptocurrency prices? How does cryptocurrency volatility affect the crypto mining company’s financial performance?

These and many other questions are the subjects of interest in this Special Issue.

Theoretical and empirical papers on the blockchain and cryptocurrency market within a wide range of research interests are welcome.

We invite you to submit your work.

Prof. Dr. Ahmet Faruk Aysan
Dr. Oguzhan Cepni
Dr. Erdinc Akyildirim
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • cryptocurrencies
  • FinTech
  • sentiment analysis
  • machine learning applications
  • blockchain
  • mining companies

Published Papers (5 papers)

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19 pages, 3953 KiB  
Article
Predictive Power of Random Forests in Analyzing Risk Management in Islamic Banking
by Ahmet Faruk Aysan, Bekir Sait Ciftler and Ibrahim Musa Unal
J. Risk Financial Manag. 2024, 17(3), 104; https://doi.org/10.3390/jrfm17030104 - 01 Mar 2024
Viewed by 1116
Abstract
This study utilizes the random forest technique to investigate risk management practices and concerns in Islamic banks using survey data from 2016 to 2021. Findings reveal that larger banks provide more consistent survey responses, driven by their confidence and larger survey budgets. Moreover, [...] Read more.
This study utilizes the random forest technique to investigate risk management practices and concerns in Islamic banks using survey data from 2016 to 2021. Findings reveal that larger banks provide more consistent survey responses, driven by their confidence and larger survey budgets. Moreover, a positive link is established between a country’s development, characterized by high GDPs and low inflation and interest rates, and the precision of Islamic banks’ survey responses. Analyzing risk-related concerns, the study notes a significant reduction in credit portfolio risk attributed to improved risk management practices, global economic growth, stricter regulations, and diversified asset portfolios. Concerns related to terrorism financing and cybersecurity risks have also decreased due to the better enforcement of anti-money laundering regulations and investments in cybersecurity infrastructure and education. This research enhances our understanding of risk management in Islamic banks, highlighting the impact of bank size and country development. Additionally, it emphasizes the need for ongoing analysis beyond 2021 to account for potential COVID-19 effects and evolving risk management and regulatory practices in Islamic banking. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
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15 pages, 233 KiB  
Article
Unveiling Cryptocurrency Impact on Financial Markets and Traditional Banking Systems: Lessons for Sustainable Blockchain and Interdisciplinary Collaborations
by Umar Kayani and Fakhrul Hasan
J. Risk Financial Manag. 2024, 17(2), 58; https://doi.org/10.3390/jrfm17020058 - 01 Feb 2024
Viewed by 5860
Abstract
The advent of cryptocurrencies and blockchain technology has sparked a revolutionary shift in the financial sector. This study sets out on a wide-ranging investigation to understand the nuanced dynamics, repercussions, and potential future paths of this shifting environment in the UK and USA. [...] Read more.
The advent of cryptocurrencies and blockchain technology has sparked a revolutionary shift in the financial sector. This study sets out on a wide-ranging investigation to understand the nuanced dynamics, repercussions, and potential future paths of this shifting environment in the UK and USA. The primary goals of the research are to examine how cryptocurrencies affect financial markets and conventional banking systems; to examine how blockchain technology might be used in the financial sector; to assess policy and regulatory considerations; and to predict and plan for the future. This research digs into how cryptocurrencies have revolutionized the banking and finance sectors. Analysis of adoption rates, market volatility, and integration methods sheds light on the changing position of cryptocurrencies in investment portfolios, reconfiguration of asset classes, and coping mechanisms of conventional financial institutions. When looking at the financial sector as a whole, the transformational potential of blockchain technology becomes clear. The advent of DeFi, smart contracts, and asset tokenization offers new prospects to improve financial transactions, increase transparency, and broaden participation in the investment market. The research analyzes cryptocurrencies and blockchain technology from a policy and regulatory perspective. The delicate balancing act between stimulating innovation and guaranteeing consumer protection, market integrity, and financial stability is highlighted by a comparison of the regulatory methods adopted in the United Kingdom and United States, as well as proposals from international organizations. The research identifies potential future paths for these technologies and their implications. Opportunities and challenges that will influence the future of finance emerge, with a focus on central bank digital currencies (CBDCs), sustainable blockchain solutions, and interdisciplinary collaborations. As this deep dive comes to a close, the transformational power of cryptocurrencies and blockchain technology is highlighted. It sheds light on the forces that are altering the structures of the world’s financial markets, conventional banking structures, and regulatory frameworks. The findings and critical assessment stress the need for well-considered choices, ethical innovation, and interdisciplinary cooperation in order to succeed in an ever-changing environment. To further democratize access, improve transparency, and reshape the economic fabric of our planet, the future of finance resides at the confluence of tradition and innovation, where cryptocurrencies and blockchain technology exist. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
13 pages, 1775 KiB  
Article
Are Cryptocurrency Forks Wealth Creating?
by Bill Hu and Jonathan Miller
J. Risk Financial Manag. 2023, 16(12), 510; https://doi.org/10.3390/jrfm16120510 - 08 Dec 2023
Viewed by 1235
Abstract
We find that planned cryptocurrency forks, like voluntary corporate spin-offs, are wealth-creating. Involuntary forks that are forced due to hacks and other problems with the blockchain are not. We find diminishing returns for second-generation forks, alleviating the concern of forking solely for wealth [...] Read more.
We find that planned cryptocurrency forks, like voluntary corporate spin-offs, are wealth-creating. Involuntary forks that are forced due to hacks and other problems with the blockchain are not. We find diminishing returns for second-generation forks, alleviating the concern of forking solely for wealth creation. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
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17 pages, 487 KiB  
Article
Blockchain-Augmented Digital Supply Chain Management: A Way to Sustainable Business
by Samir Yerpude, Kiran Sood and Simon Grima
J. Risk Financial Manag. 2023, 16(1), 7; https://doi.org/10.3390/jrfm16010007 - 23 Dec 2022
Cited by 29 | Viewed by 3376
Abstract
The objective of this article is to assist the reader in understanding the journey from traditional Supply Chain Management to Digital Supply Chain Management. It aims to augment the concept of Digital Supply Chain Management with blockchain technology and create an extensive literature [...] Read more.
The objective of this article is to assist the reader in understanding the journey from traditional Supply Chain Management to Digital Supply Chain Management. It aims to augment the concept of Digital Supply Chain Management with blockchain technology and create an extensive literature review to assist in formulating the gaps and discovering the variables that contribute towards the efficiency of a Blockchain-Based Digital Supply Chain. Moreover, this article aims to validate the impact of specified parameters resulting in customer retention and market leadership for an organization. Digital technologies such as the Internet of Things, blockchain, etc., are disrupting the traditional ways of doing business and creating value propositions for customers. Supply Chain Management is a key business process for an organization that helps them compete in the market. Organizations have seized competition not as individual brands but as supply chains. Digital Supply Chain Management is the implementation of digital technologies to capture customer data at every interaction to create customer engagement strategies. This article provides an empirical analysis of parameters influencing a Blockchain-Augmented Digital Supply Chain resulting in customer retention and market leadership and shows how, through a Blockchain-Based Digital Supply Chain, the business objective of being a customer-centric organization is assisted with the customer data generated at each interaction that is enabled. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
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11 pages, 612 KiB  
Hypothesis
Lackluster Adoption of Cryptocurrencies as a Consumer Payment Method in the United States—Hypothesis: Is This Independent Technology in Need of a Brand, and What Kind?
by Luke Kowalski, William Green, Simon Lilley and Nikiforos Panourgias
J. Risk Financial Manag. 2023, 16(1), 23; https://doi.org/10.3390/jrfm16010023 - 30 Dec 2022
Cited by 2 | Viewed by 2648
Abstract
Cryptocurrencies were supposed to replace traditional payment methods when they were invented over 13 years ago, but adoption by the general consumer is still lacking, at least in the United States. Instead, crypto is often used as a speculative investment, by illicit actors, [...] Read more.
Cryptocurrencies were supposed to replace traditional payment methods when they were invented over 13 years ago, but adoption by the general consumer is still lacking, at least in the United States. Instead, crypto is often used as a speculative investment, by illicit actors, or for use cases unrelated to everyday purchases. A literature review on general adoption barriers and interviews with experts has only unearthed factors like usability, performance, and political drivers, among other barriers. Brand as an adoption barrier is mostly missing from literature, at least for cryptocurrencies. This led to the formation of a hypothesis related to crypto’s lack of adoption as a payment method. A framework is being designed based on the technology adoption model to find out if “brand” has an impact on cryptocurrency adoption, which was paradoxically designed to be brandless and not needing any institutional trust. The intent is to focus on what “Bitcoin 2.0” might look like, and to also delve further and gauge perceptions about various types of brands getting involved in the next generation of cryptocurrencies, including traditional banks, governments, technology companies, and also some of the decentralized and hybrid consortia currently vying to get consumers to use stablecoins, nation-issued cryptocurrencies, and other forms of digital instruments. While other studies had focused on trust, early adopter usability, or performance of blockchain networks, this work intends to focus on the general consumer’s perceptions about digital money, and the types of brands and evolution of this instrument liable to increase uptake. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
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