98

Blockchain Technology

As stated by a Bitcoin technology expert:

What has contributed to the non-adoption of cryptocurrencies I would say is the

Reserve Bank, which has not been very supportive of cryptocurrencies. Secondly, it’s

the shortage of US dollars. Why, because to buy your crypto you need to buy it with

real money on your exchanges like the bitraxs, your coin base and those people don’t

take the bond notes, and our Master cards don’t work outside of the country. So, I

believe that inhibited cryptocurrencies. What contributed to the adoption like I said the

fear of missing out and secondly, I would say just the high number of people talking

about the crypto. Also, the gains that Bitcoin made last year made crypto an attractive

investment.

Non-adoption of cryptocurrencies has been largely due to RBZ not being supportive

of cryptocurrencies and lack of the US dollar in the market to purchase crypto­

currencies, coupled with the hazards of Ponzi schemes, scams and bubble burst.

Furthermore, lack of retailers accepting virtual currencies as well as regulatory

warnings have just compounded the fears.

On the other hand, adoption has been catalyzed by fear of missing out, peer pres­

sure and the high gains made by Bitcoin last year. This is attested to by a Bitcoin

entrepreneur, who had the following to say:

What is increasing the adoption of cryptocurrency are the cash crisis, large diaspora

contingent, cheaper remittances, and bullish prices of cryptocurrencies. People are up

against the wall and need their businesses to operate. They will look for any means and

TABLE 6.7

Rotated Component Matrix

Component

1

2

3

4

5

As an investment vehicle

0.625

0.137

0.266

0.106

0.071

Hold it as digital schemes to generate club money

0.644

0.233

0.268

0.050

−0.419

Transaction motive, e.g. buying ex-Japanese

vehicles

0.122

0.268

−0.100

0.754

−0.099

For cross-border remittances

0.244

0.676

0.176

0.430

0.054

External money transfer

0.367

0.659

−0.096

0.048

0.023

To receive payment for online jobs

0.056

0.273

0.263

−0.005

0.786

Lower transaction costs

0.788

−0.224

−0.104

0.175

0.020

Speed and convenience of transacting

0.773

0.268

−0.118

−0.223

0.124

High security features

0.425

−0.040

0.704

−0.037

0.316

Potentially limitless application of blockchain

technology in record keeping and database

management

−0.070

0.752

0.113

−0.021

0.146

Abstraction Technique: Principal Component Analysis

Source: Primary data.