Determinants of Crypto Currency Adoption among ICT/Tech Businesses in Uyo City, Nigeria

Abstract

Existing literature shows that businesses adopt cryptocurrency transactions due to factors such as transaction speed, low transaction costs, transaction security, and high returns on investment. This research investigates the determinants of cryptocurrency adoption in Nigeria, taking into account the factors identified in the literature. To achieve the research objectives, three research objectives and three hypotheses were formulated to guide the study. An ex-post facto research design was adopted for the study. The population of the study consisted of all 1,200 owners of ICT businesses in Uyo local government Area of Akwa Ibom State, from which 10% (120) were purposefully selected to constitute the sample size of the study. The Cryptocurrency Adoption Questionnaire (CAQ) was used to collect data from the selected sample. The collected data was analyzed using Logit regression, correlation analysis, and descriptive statistics. All the independent variables - cryptocurrency Security Index (CSI), Transaction cost Index (TCI), Value Stability Index (VSI) - exhibited a significant impact on Cryptocurrency Adoption (CCA). Based on the findings, the study recommends, among other things, that there should be regulations on the operation of cryptocurrency by the government through the monetary authority to ensure that the inventors of the platforms can be traced in order to enforce recovery in case of default.