EFFECT OF DIGITAL CURRENCY ON FINANCIAL MARKETS: : Analysis of Private Banks in Kurdistan Region of Iraq

Rizhin Nuree Othman; Khowanas Saeed Qader; Sanarya Adnan Anwer; Hawkar Anwar Hamad; Hamin Khasrow Ibrahim; Bayar Gardi; Pshdar Abdalla Hamza; Dashty Ismil Jamil

doi:10.25212/lfu.qzj.8.4.48

المؤلفون

Rizhin Nuree Othman Department of Information Technology, College of Engineering and Computer Science, Lebanese French University, Kurdistan Region, Iraq.
Khowanas Saeed Qader Department of Accounting and Finance, College of Administrations and Economics, Lebanese French University, Kurdistan Region, Iraq.
Sanarya Adnan Anwer Department of Business Administration, College of Administrations and Economics, Lebanese French University, Kurdistan Region, Iraq.
Hawkar Anwar Hamad Department of Accounting and Finance, College of Administrations and Economics, Lebanese French University, Kurdistan Region, Iraq.
Hamin Khasrow Ibrahim Department of Accounting and Finance, College of Administrations and Economics, Lebanese French University, Kurdistan Region, Iraq.
Bayar Gardi Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil, Kurdistan Region, Iraq.
Pshdar Abdalla Hamza Department of Business Administration, Kurdistan Technical Institute, Sulaymaniyah, Iraq.
Dashty Ismil Jamil Department of Marketing, College of Administrations and Economics, Lebanese French University, Kurdistan Region, Iraq.

DOI:

https://doi.org/10.25212/lfu.qzj.8.4.48

الكلمات المفتاحية:

Digital Currency, Supply Side, Demand Side, Financial Market.

الملخص

The influence that digital currency has had on the activities of platform companies are discussed in this article. Companies employ digital platforms to increase productivity, strengthen client relationships, and cut expenses. The study applied quantitative method by collected 116 questionnaires. Finally, the findings revealed that, demand side and the demand side the study focused on (Security, Usability, Irrevocability, Marketing and reputational effects) positively and significantly have influence on financial market. Moreover, it was found that the supply side had more influence than demand side on financial market.

التنزيلات

بيانات التنزيل غير متوفرة بعد.

المراجع

Altan, A., Karasu, S., & Bekiros, S. (2019). Digital currency forecasting with chaotic meta-heuristic bio-inspired signal processing techniques. Chaos, Solitons & Fractals, 126, 325-336.

Anagnostopoulos, I. (2018). Fintech and regtech: Impact on regulators and banks. Journal of Economics and Business, 100, 7-25.

Andolfatto, D. (2021). Assessing the impact of central bank digital currency on private banks. The Economic Journal, 131(634), 525-540.

Bindseil, U. (2019). Central bank digital currency: Financial system implications and control. International Journal of Political Economy, 48(4), 303-335.

Bordo, M. D., & Levin, A. T. (2019). Improving the monetary regime: The case for US digital cash. Cato J., 39, 383.

Chen, Y., & Sivakumar, V. (2021). Invesitigation of finance industry on risk awareness model and digital economic growth. Annals of Operations Research, 1-22.

Chiu, J., Davoodalhosseini, S. M., Hua Jiang, J., & Zhu, Y. (2019). Bank market power and central bank digital currency: Theory and quantitative assessment.

Corbet, S., Hou, Y. G., Hu, Y., Oxley, L., & Xu, D. (2021). Pandemic-related financial market volatility spillovers: Evidence from the Chinese COVID-19 epicentre. International Review of Economics & Finance, 71, 55-81.

Corbet, S., Lucey, B., Urquhart, A., & Yarovaya, L. (2019). Cryptocurrencies as a financial asset: A systematic analysis. International Review of Financial Analysis, 62, 182-199.

da Gama Silva, P. V. J., Klotzle, M. C., Pinto, A. C. F., & Gomes, L. L. (2019). Herding behavior and contagion in the cryptocurrency market. Journal of Behavioral and Experimental Finance, 22, 41-50.

Gardi, B., Hamza, P. A., Qader, K. S., Anwar, H., Hamad, D., & Anwar, G. (2021). Factors affecting the quality of financial statements on investment decision making.

Guesmi, K., Saadi, S., Abid, I., & Ftiti, Z. (2019). Portfolio diversification with virtual currency: Evidence from bitcoin. International Review of Financial Analysis, 63, 431-437.

Hamad, H. A., Hamza, P. A., Gardi, B., Saeed, K., Qader, D., & Anwar, G. (2021). The influence of accounting software in minimizing business costs.

Hamad, H. A., Qader, K. S., Gardi, B., Abdalla, P., Hamza, D., & Anwar, G. (2021). The essential variables to consider before investing in financial markets during Covid-19.

Hamza, P. A., Hamad, H. A., Qader, K. S., Gardi, B., & Anwar, G. (2021). Management of outsourcing and its relationship with hotels’ performance: An empirical analysis of selected hotels in Erbil. International Journal of Advanced Engineering Research and Science, 8, 10.

Abdalla Hamza, P., Gardi, B., Hamad, H., & Anwar, G. (2021). Analysis the impact of Information technology on Efficient tax Management. Bayar and Hamad, Hawkar and Anwar, Govand, Analysis the impact of Information technology on Efficient tax Management (December 6, 2021).

Haryanto, S., Subroto, A., & Ulpah, M. (2020). Disposition effect and herding behavior in the cryptocurrency market. Journal of Industrial and Business Economics, 47(1), 115-132.

Jiang, Y., Wu, L., Tian, G., & Nie, H. (2021). Do cryptocurrencies hedge against EPU and the equity market volatility during COVID-19?–New evidence from quantile coherency analysis. Journal of International Financial Markets, Institutions and Money, 72, 101324.

Khiaonarong, T., & Humphrey, D. (2019). Cash use across countries and the demand for central bank digital currency. Journal of Payments Strategy & Systems, 13(1), 32-46.

Arjun, R., & Suprabha, K. R. (2020). Innovation and Challenges of Blockchain in Banking: A Scientometric View. International Journal of Interactive Multimedia & Artificial Intelligence, 6(3).

Kulyasov, N. S., Opekunov, V. A., & Tikhonov, Y. P. (2022). The Role of Digital Assets in Transforming Corporate Relations. In Proceedings of the International Scientific Conference “Smart Nations: Global Trends In The Digital Economy” (pp. 72-79). Springer, Cham.

Latimer, P., & Duffy, M. (2019). Deconstructing digital currency and its risks: Why ASIC must rise to the regulatory challenge. Federal Law Review, 47(1), 121-150.

Legotin, F. Y., Kocherbaeva, A. A., & Savin, V. E. (2018). Prospects for crypto-currency and blockchain technologies in financial markets. Revista Espacios, 39(19).

Lekashvili, E., & Mamaladze, L. (2018). Crypto currency–a new challenge for the economy of Georgia. Copernican Journal of Finance & Accounting, 7(4), 87-97.

Leshchenko, O., Trush, O., Dahno, N., Dudnik, A., Kazintseva, K., & Kovalenko, O. (2020, November). Methods for predicting adjustments to the rates of modern “digital money”. In 2020 IEEE 2nd International Conference on Advanced Trends in Information Theory (ATIT) (pp. 222-226). IEEE.

Li, C., Pervaiz, K., Asif Khan, M., Ur Rehman, F., & Oláh, J. (2019). On the asymmetries of sovereign credit rating announcements and financial market development in the European region. Sustainability, 11(23), 6636.

Li, Z., Dong, H., Huang, Z., & Failler, P. (2018). Asymmetric effects on risks of Virtual Financial Assets (VFAs) in different regimes: A Case of Bitcoin. Quantitative Finance and Economics, 2(4), 860-883.

Liang, J., Li, L., Chen, W., & Zeng, D. (2019, July). Towards an understanding of cryptocurrency: a comparative analysis of cryptocurrency, foreign exchange, and stock. In 2019 IEEE International Conference on Intelligence and Security Informatics (ISI) (pp. 137-139). IEEE.

Lipton, A., Sardon, A., Schär, F., & Schüpbach, C. (2020). From Tether to Libra: Stablecoins, Digital Currency and the Future of Money. arXiv preprint arXiv:2005.12949.

Manavi, S. A., Jafari, G., Rouhani, S., & Ausloos, M. (2020). Demythifying the belief in cryptocurrencies decentralized aspects. A study of cryptocurrencies time cross-correlations with common currencies, commodities and financial indices. Physica A: Statistical Mechanics and its Applications, 556, 124759.

Mancini-Griffoli, T., Peria, M. S. M., Agur, I., Ari, A., Kiff, J., Popescu, A., & Rochon, C. (2018). Casting light on central bank digital currency. IMF Staff Discussion Notes, 18(08).

Maniff, J., & Wong, P. (2020). Comparing means of payment: what role for a central bank digital currency?. FEDS Notes, (2020-08), 13-2.

Mhlanga, D. (2020). Industry 4.0 in finance: the impact of artificial intelligence (ai) on digital financial inclusion. International Journal of Financial Studies, 8(3), 45.

Popescu, A. D. (2021). Central Banks Digital Currency-Opportunities and Innovation. Ovidius University Annals, Series Economic Sciences, 21(1).

Qader, K. S., Hamad, H. A., Gardi, B., Abdalla, P., Hamza, D., & Anwar, G. (2021). The role of sophisticated accounting system in organizational planning.

Qian, Y. (2019). Central Bank Digital Currency: optimization of the currency system and its issuance design. China economic journal, 12(1), 1-15.

Risman, A., Mulyana, B., Silvatika, B., & Sulaeman, A. (2021). The effect of digital finance on financial stability. Management Science Letters, 11(7), 1979-1984.

Saito, K., & Iwamura, M. (2019). How to make a digital currency on a blockchain stable. Future Generation Computer Systems, 100, 58-69.

Salisu, A. A., & Ogbonna, A. E. (2021). The return volatility of cryptocurrencies during the COVID-19 pandemic: Assessing the news effect. Global Finance Journal, 100641.

Sapovadia, V. (2018). Financial inclusion, digital currency, and mobile technology. In Handbook of Blockchain, Digital Finance, and Inclusion, Volume 2 (pp. 361-385). Academic Press.

Senou, M. M., Ouattara, W., & Acclassato Houensou, D. (2019). Financial inclusion dynamics in WAEMU: Was digital technology the missing piece?. Cogent Economics & Finance, 7(1), 1665432.

Stolbov, M. I. (2019). The 10th anniversary of the cryptocurrency market: Its current state and prospects. Voprosy ekonomiki, (5), 136-148.

Sun, W., Dedahanov, A. T., Shin, H. Y., & Kim, K. S. (2020). Switching intention to crypto-currency market: Factors predisposing some individuals to risky investment. PloS one, 15(6), e0234155.

Vyhovska, N., Polchanov, A., Frolov, S., & Kozmenko, Y. (2018). The effect of it-transformation of the country's financial potential during the post-conflict reconstruction. Public and Municipal Finance, 7(3), 15-25.

Wajdi, M., Nadia, B., & Ines, G. (2020). Asymmetric effect and dynamic relationships over the cryptocurrencies market. Computers & Security, 96, 101860.

Wójcik, D., & Ioannou, S. (2020). COVID‐19 and finance: market developments so far and potential impacts on the financial sector and centres. Tijdschrift voor economische en sociale geografie, 111(3), 387-400.

Yang, L., & Zhang, Y. (2020). Digital financial inclusion and sustainable growth of small and micro enterprises—Evidence based on China’s new third board market listed companies. Sustainability, 12(9), 3733.

Yao, Q. (2018). A systematic framework to understand central bank digital currency. Science China Information Sciences, 61(3), 1-8.Yu, J. H., Kang, J., & Park, S. (2019). Information availability and return volatility in the bitcoin market: analyzing differences of user opinion and interest. Information Processing & Management, 56(3), 721-732.