Tag: G23

STABLECOIN DP2P: INNOVATION AND SUSTAINABILITY IN FIAT CURRENCIES

Fernando TEIXEIRA

Assistant Professor, Department of Business Sciences, Polytechnic Institute of Beja, Portugal

fernando.teixeira@ipbeja.pt

Susana Soares Pinheiro Vieira PESCADA

Assistant Professor, Faculty of Economy, University of Algarve, Portugal

spescada@ualg.pt

Christos Ap. LADIAS

Professor, Regional Science Inquiry Journal, Greece

Ladias@rsijournal.eu

Murat HULAJ

Assistant professor, Faculty of Law, University of Haxhi Zeka, Peja, Kosovo,

murat.hulaj@unhz.eu

(Corresponding Author)

Filipos RUXHO

Assistant professor, Faculty of Agribusiness, University of Haxhi Zeka, Peja, Kosovo,

filipos.ruxho@unhz.eu

Valter MACHADO

Instituto Politécnico de Beja, Portugal

valterfilipemachado@gmail.com

Abstract

This study investigates the potential of decentralised stablecoins (dP2P) as financing mechanisms and currency stabilisers in developing economies. The quantitative, exploratory, and correlational approach, based on the hypothetical-deductive method, uses data from 2010 to 2020 provided by sources such as The World Bank, OECD, and IMF, covering both developing and developed countries. The main hypothesis is that dP2P offers greater exchange rate stability compared to fiat currencies in emerging economies. The methodology involves applying simple moving averages (SMA) to assess exchange rate volatility and compare the performance of dP2P with traditional currencies. The results reveal that during the analysed decade, several fiat currencies experienced significant depreciations, while dP2P exhibited lower volatility. Argentina and Angola recorded the largest depreciations, reflecting high levels of economic instability, whereas currencies like the Costa Rican colon and the Vietnamese dong showed greater resilience. dP2P tracked the depreciation trends of fiat currencies, but with less intensity, indicating a higher potential for value preservation. The main contributions of this study are the empirical validation of stablecoins as a viable alternative to mitigate exchange rate volatility in emerging economies and the introduction of SMA as an effective tool for analysing the stability of crypto assets, expanding the application of statistical methods in evaluating decentralised finance (DeFi).

Keywords: Stablecoins, FIAT, volatility, and Fiat currencies,

JEL classification: G10, G23, E44, E47,

pp. 95-106

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ARTIFICIAL INTELLIGENCE WAVES IN FINANCIAL SERVICES INDUSTRY: AN EVOLUTION FACTORIAL ANALYSIS

Ardita TODRI

Associate Professor, University of Elbasan

ardita.todri@uniel.edu.al

Petraq PAPAJORGJI

Professor, Proinfinit Consulting Tirana

petraq@gmail.com

Abstract

Artificial intelligence (AI) has gained prominence in the financial industry. Thus, it is particularly interesting to address the financial services where AI-based systems are mainly used, the reasoning for their use, risks, and evolution potentialities. This research explores the viewpoints of professionals inside and outside the European Union area on AI-based services in the financial industry, aiming to analyze their current position and conceptualize their evolution through an integrative method study. The analyzed data pertain to 523 professionals (out of 740 contacted) who have compiled an online questionnaire related to four study pillars, such as AI-based systems use in financial services (A), the reasoning for their use (B), their risks (C) and evolution potentialities (D). Then, we examine how AI-based systems impact the evolution of AI in financial services (D) use in financial services (A), the reasoning for their use (B), and their risks (C). The study argues that to encourage a sustainable future of AI evolution in the financial sector, the risk management approach is a crucial aspect that regulatory bodies should consider accurately. According to the field professionals’ collected opinions in this study referring to their gender and age, special attention should be paid to these risks: AI limitations in forecasting market uncertainties, their lack of ethical values and explainability, as well as their no-audited versions. Therefore, academia and field professionals recommend the establishment of regulatory standards that, compared to risk management approaches, leave enough space even for AI innovation.

Keywords: artificial intelligence, financial services industry, fintech, risk management

JEL classification: G21, G22, G23

 pp. 63-75

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