Master of Systems Software Engineering

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https://testir.kiu.ac.ug/handle/20.500.12306/281

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Browsing Master of Systems Software Engineering by Subject "Blockchain"

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    An Assets-Backed Central Bank Digital Currency Framework for Solving Volatility
    (Kampala International University, 2022-10) Emmanuel, Junior Morris
    Although there have been a few digital currency frameworks developed such as bitcoin, cryptocurrency, or stablecoins; unfortunately, these frameworks are volatile, hence, rendering them unsuitable, unfitting, and inappropriate for the Liberian context. The main objective of this study is to develop a non-volatile assets-backed central bank digital currency framework for Liberia. Specifically; to examine existing digital currency frameworks, to establish the requirements for the proposed assets-backed central bank digital currency framework, to develop the proposed assets-backed central bank digital currency framework, and to validate the proposed assets-backed central bank digital currency framework. This research adopts the post-positivism paradigm, and utilizes design science methodology, with mixed methods and techniques to achieve this goal. Specifically; document analysis, case studies, and literature review were used to examine the existing digital currency frameworks, the Delphi experts method was opted to establish the requirements for the assets-backed central bank digital currency framework, design science to develop the assets-backed central bank digital currency framework, and the Analytic Hierarchy Process (AHP) expert’s method to validate the framework. Statistical techniques were applied to the data to determine the statistics of the requirements for the proposed framework. From the validation results from the AHP experts, the study found that tangible and intangible assets such as gold, diamond, silver, real estate, cruel oil, bonds, patents, renewable energy, stocks, and confidential data are the remedy to volatility. In addition, the study establishes that all the other existing assets-backed digital currency frameworks are unregulated, non-governed, and do not include both tangible and intangible assets within the frameworks. The study likewise establishes that existing central bank digital currency frameworks do not integrate both tangible and intangible assets within the designs. In addition, the study establishes that the Delphi and the AHP experts' methods have not been applied in similar studies before. The study also concludes that using the design science research methodology can lead to faster framework development whose end goal will be an artifact that can solve real-world volatility problems in digital currency frameworks. The study recommends where possible; the Cash Telex assets-backed digital currency framework may include intangible assets and governance models within the existing framework, existing central bank digital currency frameworks owners may consult Delphi experts or other experts with vast frameworks requirements elicitation knowledge to re-examine the existing requirements contained in these frameworks which will remedy the gaps and flaws contained in the existing framework's requirements, existing assets-backed digital currency frameworks may adopt the design science methodology which will enable these existing frameworks to solve real-world digital currency framework volatility problems, and the existing central bank digital currency frameworks should incorporate AHP experts to re-examine the previous validation phases which will eliminate validation defects and gaps within these frameworks. This study contributes to theory, methodology, and practice. Its main contribution is the developed assets-backed central bank digital currency framework for Liberia, based on which many appropriate policies and applications may be developed. This study also contributes to the existing body of knowledge by including governance, tangible, and intangible assets within the developed assets-backed central bank digital currency framework to remedy the existing volatility associated with digital currency frameworks. It likewise contributes to methodology by being the first study that employs the design science research methodology, the Delphi expert’s method, and the Analytic Hierarchy Process (AHP) expert’s method within a single research project.