100

Blockchain Technology

We can do it experimentally here and there but when it comes to the full technology

when it comes to mining of cryptocurrency and also when it comes to the regulation

on how it’s going to be monitored, it’s as likely to be a very big problem so I would say

those are the few challenges in the adoption. Secondly maybe we can say people are

also a challenge in the sense that few people know about cryptocurrencies and are able

to do transactions. So first of all, there has to be a tutorial for the whole country on

how to use cryptocurrencies. Even our exchanges for example Golix once went down

because of too many clients so our exchanges are not up for full scale but you being the

biggest factor in the field.

This statement indicates that there is a lack of technology to implement virtual cur­

rencies on a full scale. It is also difficult to monitor and regulate cryptocurrencies.

Furthermore, few people are exposed to cryptocurrencies and are able to transact

with them.

The Bitcoin entrepreneur added to this puzzle by arguing as follows:

It’s easy to move money outside the country without being traceable. It poses a risk to

government tax revenue if implemented whole scale because there is no way to moni­

tor individuals’ wallets and peer to peer transaction. Challenges in adoption, are lack

of ownership of the Bitcoin system by an individual. Take for example when the RBZ

introduces a new note, it undertakes a consumer education program to conscientize

users. With cryptocurrencies no one does consumer education.

The Bitcoin exchange manager argued as follows:

It’s a disadvantage when the liquidity of the cryptocurrency is not available. So, if the

country has to adopt it and not available it has to go fully cryptocurrency without other

options it becomes difficult to make payments because they won’t be able to get hold of

the cryptocurrency. When it comes to challenges in the adoption of cryptocurrencies

like I said previously on education; people need to be educated about cryptocurrencies

TABLE 6.9

Rotated Component Matrix of Cryptocurrency Risk Factors

Component

1

2

3

Money laundering risk, illicit economic flow into mainstream

0.671

0.205

0.092

Terrorist financing risk

0.348

0.744

−0.151

Tax evasion

−0.007

0.836

0.072

There is a possibility that someone might hack and manipulate

blockchain ledger

−0.201

0.101

0.760

Prices fluctuation does not make it very good medium of exchange

0.833

−0.107

0.085

Lack of recourse to regulatory authority for dispute resolution

0.634

0.215

−0.217

Abstraction Technique: Principal Component Analysis

Source: Primary data.