BLOCKCHAIN TECHNOLOGY, CRYPTOCURRENCIES AND FINANCIAL INCLUSION IN NIGERIA
Keywords:
Blockchain Technology, Cryptocurrencies, Financial Inclusion, Nigerian Economy.Abstract
The study examined blockchain technology, cryptocurrencies and financial inclusion in Nigeria. Two research questions and one hypothesis guided the study. A correlational research design was adopted to achieve the central aim of the study. The population of this study comprised all the Small and Medium Scale Enterprises (SMEs) operators in Ogun East Senatorial District of Ogun East, Nigeria. A total of 200 SMEs operators were selected for the study using purposive and stratified sampling methods. Two research instruments were used for data collection, namely: Benefits of Blockchain Technology Questionnaire (BBTQ) and Benefits of Cryptocurrencies Questionnaire (BCQ). The descriptive statistics of mean and standard deviation were used in answering research questions 1 and 2, while the research hypothesis were tested using the t-test statistic. The findings of the study revealed that blockchain technology and cryptocurrency promote financial inclusion in the Nigeria economy. Scalability, interoperability, energy consumption, privacy, security, non-regulation, complexity, inefficient networking, inappropriate skills set and inadequate financial resources were the key drivers and challenges of adopting blockchain-based financial services. The blockchain-based financial services was found to be better than the traditional financial services in terms of accessibility, affordability and usability. The adoption of blockchain technology and cryptocurrency reduced the transaction cost and increase the speed of the financial transaction in the economy. The blockchain-based financial services increased the financial inclusion in the economy by providing access to the underserved population. The blockchain-based financial services also create new economic opportunities and reduce poverty in Nigeria economy by proving access to capital and financial services for SMEs operators. The use of blockchain technology and cryptocurrency increase financial literacy and capability among the low-income individual in Nigerian economy. The blockchain-based financial services also improve the overall efficiency and effectiveness of the financial services of financial system, thereby leading to economic growth and development. It was recommended among others that government policies should focus on improving networks and financial access points and the need to continue doing.
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