Islamic Finance – Crypto currency as financial product for Islamic Finance in Bahrain.

5.2 Detailed description of assessment Coursework Project Report (50%) As a group of financial consultants you are required to conduct the following project. · The First objective of this project is therefore to systematically analyze of the current status of Islamic financial services in a country of your choice and · to create a strategy for creating a new Islamic financial product or a new Islamic financial organization or process, · you can also offer a full strategy of expanding access for under-served markets, with particular focus on retail customers, or corporate customers. You are required to present a full business plan for your project. · You must show a strong ability to innovate in the Islamic finance sector. · The project could be conducted through desk research, surveys, and interviews with relevant public and private institutions, government agencies, and other stakeholders. · The emphasis of the work would be on the access to finance issues surrounding retail or corporate in the country of your choice. The work is intended to create a tool with two interlinked components – (i) the assessment on access to Islamic finance and (ii) the strategic framework for creating/expanding access through Islamic finance. Outputs: The expected outputs of this project are as follows: Pilot tool for conducting access to Islamic finance assessments and to providing a full strategic framework for possible investor or policy recommendations to invest in your innovative concept of creating and diffusing a new organization/product/process through Islamic finance products and services. Comprehensive assessment of the Islamic financial markets in the chosen country and the potential for increasing access to finance through Islamic financial institutions, products, and services. Strategic framework for implementing the newly Islamic finance institution/product or process to enhance access to Islamic finance. Produce future recommendations for the key stakeholders, such as investors, policymakers. PS: ONLY SOLVE CHAPTER 4 How Will Blockchain Technology Transform Islamic Finance? Word Count: 2,500 +-10% Task: We’re going to introduce cryptocurrency,  we’re creating a new business and designing a new financial product. We also need to focus on how to carry out our business plan, how to design our cryptocurrency to make it more compatible with Shariah(for example, some islamic scholars criticized that cryptocurrency is highly volatile so that the investment in cryptocurrency is very similar to gambling, moreover, the currency itself is not backed up by any physical assets. And these disadvantages make cryptocurrency not accepted by Islamic regulations. Then we can adopt the ‘gold standard’ to moderate our product, we make every unit of our currency pegged with a certain amount of gold, then this problem would be solved) , how to circumvent taboos in Islamic regulations, and how we are going to persuade our investors (if we have) and dispel their doubts/worries about the cryptocurrency we’re going to issue. In addition, what is our strategy to popularize our product, for example, the concept of cryptocurrency is totally new in many Islamic countries, therefore how we could make people have faith in our virtue currency? So my suggestion would be: we need to make our project more like a venture plan/business plan and we need to suppose our teacher is our investor, and we focus on how to persuade him into investing our venture. Country Choice: Bahrain Structure: Chapter 1: Intro Chapter 2: Crypto-currency compliance with Islamic Finance Chapter 3: Potential market size analysis. Different potentials from country to country (Rafa) Chapter 4: Describes the characteristics and details of our cryptocurrency and explain why it’s friendly to islamic world (how we tailored it to make it more compatible with Islam) and how it can add value to individuals as well as companies () Chapter 5: How can Wealth Managers benefit from crypto-currencies (Mo) Chapter 6: Crypto mining with the use of solar power (Artem) Chapter 7: Conclusion