CHALLENGES AND PROSPECTS OF ADOPTING CRYPTOCURRENCY IN ETHIOPIA: THE CASE OF SELECTED COMMERCIAL BANKS IN ADDIS ABABA.

Abstract

Introduction: Cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange in a secure communication and difficult to fake or double-spend. Cryptocurrency Technology have vital role to facilitate financial transactions in any nation. In Ethiopia, little is known about the application and prospect of cryptocurrency. Objective: - This study aims to investigate the challenges and prospects of implementation of Cryptocurrency project in Ethiopia. Methodology: -Institution based cross-sectional descriptive qualitative study design was employed. A total of 108 study participants/key informants were selected purposively among bankers working on commercial banks in Addis Ababa. The key informants or Participants were selected based on their type of profession and work experience in their respective banks. The data were collected using structured self- administered questionnaire that contained 11 open -ended and 11 close ended questions that gather information on challenges and prospectus of cryptocurrency among bankers. The quantitative data were analyzed by using frequency and percentage and summarized using tables. Qualitative data were thematized and narrated accordingly Result: - A total of 76 study participants involved in the study with a response rate of 70.4%. Among the study participants, majority (84.2%) were male, 62% were in the age category of 26-36 years, 63% were first degree holders, 40.8% were working in the international banking, and majority (48.7%) served for 5-10 years. The qualitative data showed that the technology is advanced and it has major challenges in terms of technology, skilled power, and awareness, and suggested that some operational and technical guidance need to be made on the technology to fit within the bank’s workers. Conclusion: - Despite of the challenges, government of Ethiopia must take into consideration on the acceptability of the cryptocurrency and blockchain technology by the banks and public. Different stakeholders in the country should be involved like ministry of technology, national banks of Ethiopia to produce the best method for the design and development of the bank’s decentralized technology.