Impact of digital currencies on economic development in Kenya

Account and Financial Management Journal, 2021

The growth of the economy is a concern to many because it has an influence on the progress of a country and its citizens. It is expected that an economy with a highly advanced digital money system should also experience high economic growth. However, statistics indicate that the economic growth rate in Kenya has been fluctuating and has failed to grow consistently despite numerous policy interventions. This study sought to establish the influence of digital money on Economic Growth in Kenya. The study incorporated a descriptive research technique and a time series approach to analyse the relationship between digital money and economic growth using Kenyan quarterly data from 2011 to 2020. Four variables were used as proxies to measure digital money: - the value of mobile money transactions, the value of cards money transactions, the value of internet banking (EFTs) transactions and agency banking. The findings revealed that all relationships that were tested were positive and signifi...

International Journal of Innovative Research and Development, 2018

In January 2009, the whole world was introduced to a new financial invention called Bitcoin. This coin is intended to accelerate globalisation of the financial market. Significantly, the inventor is credited as the first to succeed in solving the double-spending challenges associated with digital currency. Prior to the invention, a white paper about the bitcoin was authored and released in 2008under the name, Satoshi Nakamoto. However, the name, Satoshi Nakamoto, remains a mystery; the original inventor of the bitcoin remains a mirage to the financial world. Some analysts believe a pseudonym, rather than an original name, was used in creating the bitcoin. The main purpose of this research was to assess the financial impact of crypto currency, specifically bitcoin, on the Ghanaian and other economies across the globe. The systematic exploratory technique, an example of the mixed methods approach to scientific inquiry, was adapted for this research. Data required for the conduct of this research were obtained mainly from secondary sources. These included text books, journals, newspaper publications, and digital currency markets.Findings from the research revealed divergent views on the prospects of bitcoins in the medium-and long-term: some experts believed a bitcoin would soon trade at 1BTC: US$12,000 while others believed the future of the digital currency cannot be predicted with relative ease, what would become of the bitcoin in the medium-and long-term. The findings revealed some price volatilities in the bitcoin market. This notwithstanding, the digital currency has made remarkable strides in value since 2009 till date. The study recommended the need for governments to introduce measures that would ensure anti-money laundering, and "know-your-customer" controls; reduce the level of anonymity and privacy to eventually minimise use of bitcoins in criminal activities. There is the need for intelligence agencies of governments to engage the services of individuals who are technologically savvy to understand, operate and control the bitcoin system, which is technologically more complex than most of the computer systems used in day-today operations in various organisations. Institutions of higher learning and professional bodies could integrate the study of crypto currency into individual business related programmes.

The main purpose of the paper is to assess the nature and types of digital currency and the potential impact of digital currency adoption on African economies. The paper is based on a review of various articles, working papers, books, policy documents and legislations, and relevant websites of central banks as well as other international institutions which provide public information regarding digital currency. A qualitative descriptive design has been adopted in this study. Qualitative content analysis of documents was carried out and semistructured interview conducted to elicit the views of five (5) key informants. From the political economy perspective and in the light of prevailing economic conditions of chronic inflation and national currency volatility with the prospects of 'digital dollarization, the paper argues that Africa ought to launch a single regional digital currency or a digital currency payment platform to address its negative impact rather than the issuance of national CBDCs which has the tendency to magnify the national fiat currency volatility in the digital economy. Additionally, the paper shows that digital currency average per transaction cost is 103.5 times cheaper than Sub-Saharan Africa average cost. It is also 65.5 times and 51.4 times cheaper than the digital remittance index and the global SmaRT average cost respectively. Furthermore, the paper demonstrates that digital currency adoption and spread in Africa is irreversible and Africa governments and regulators should adopt a regional approach to regulation, rather than regulate against digital assets, embrace and invest in robust research into digital currency ecosystem. Finally, in view of the limited research into digital currency adoption and its impact, design and technology options in Africa, the need for future research agenda to focus in these areas cannot be over emphasized.

This study examines Kenyan youths' level of knowledge and involvement in the cryptocurrency industry. Digital currencies, known as cryptocurrencies, use a peer-to-peer technology to speed up internet transactions. The idea of cryptocurrencies started in the 1980s but has since developed significantly. The study collected secondary data and conducted online surveys. In this study, panel data from four different cryptocurrencies' values, transaction fees, and volumes over a six-year period were studied. The findings indicate a connection between the number of cryptocurrency transactions, their prices, and their transaction costs. The research also demonstrates how much the youth in Kenya are aware of and use cryptocurrencies. This paper also highlights some factors that may be considered when engaging in crypto business. It also highlights some of the principal properties of cryptos. The study concludes that there is a need for both local and international regulation of the cr...

In recent years, interests have been shown and they are growing at an alarming rate by every second in Bitcoin an innovation which has been somehow rebelled to potentially play undenied major role in e-commerce above and beyond. It has been predicted that in a decade or few to come, Bitcoin and other crypto currencies available will be the backbone of e-commerce. The objective of this study is to come up and provide a comprehensive empirical study on the payment and investment features of Bitcoin and their implications for the conduct of e-commerce with great focus in Africa as a whole. Bitcoin is a purely peer to peer version of electronic cash which allows online payments to be sent directly from one party to another without going through a financial institution. Computerized marks give some portion of the arrangement; however, the primary advantages are lost if a believed outsider is as yet required to forestall double spending. Satoshi Nakamoto proposed an answer for the double spending issue utilizing a friend to peer network. The system timestamps exchanges by hashing them into a continuous chain of hash-based evidence of work, framing a record that can't be changed without re-trying the verification of work.

SSRN Electronic Journal, 2018

The study sought to analyze the impact of cryptocurrencies in Zimbabwe: an analysis of bitcoins. The study specific objective was to gain an understanding of bitcoins used by banks in Zimbabwe; to find out if Bitcoins can solve liquidity crunch in Zimbabwe, to ascertain factors that influence the adoption of bitcoins by banks in Zimbabwe. The study adopted a conceptual framework to show a diagrammatic relationship between independent variables and dependent variable. To strengthen the conceptual framework, the researcher used theories such as mises regression theory. The study used primary data which was collected through use of questionnaires with respondents were from selected sample of banks in Zimbabwe such as CBZ, Stewart bank and Cabs. The sample size was fifty. A modified Likert scale questionnaire was developed divided into five parts. A pilot study was carried out to refine the instrument. Data analysis was performed on a computer using Statistical Package for Social Science (SPSS Version 21) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables. The study concluded there are many meanings attached to cryptocurrency, it is beneficial to adopt cryptocurrency and there are many challenges faced in adopting cryptocurrency. The study recommended that banks in Zimbabwe need to adopt cryptocurrency and banks should enhance cryptocurrency.

ISA, 2019

The study ought to bring an analsis of the impact of cryptocurrencies in Zimbabwe: an analysis of bitcoins. The study specific objective was to gain an understanding of bitcoins used by banks in Zimbabwe; to find out if Bitcoins can solve liquidity crunch in Zimbabwe, to ascertain factors that influence the adoption of bitcoins by banks in Zimbabwe. The study adopted a conceptual framework to show a diagrammatic relationship between independent variables and dependent variable. To strengthen the conceptual framework, the researcher used theories such as mises regression theory. The study adopted primary data which was gathered through use of questionnaires with respondents were from selected sample of Zimbabwean banks such as CBZ, Stewart bank and Cabs. The sample size was fifty. A modified Likert scale questionnaire was developed categorized into five parts. A pilot study was conducted to refine the instrument. Data analysis was performed on a computer using Statistical Package for Social Science (SPSS Version 24) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables. The study concluded there are many meanings attached to cryptocurrency, it is beneficial to adopt cryptocurrency and there are many challenges faced in adopting cryptocurrency. The study recommended that banks in Zimbabwe need to adopt cryptocurrency and banks should enhance cryptocurrency.

INTERNATIONAL JOURNAL OF ADANCED RESEARCH, 2019

Money serves as a medium for which goods and services are exchanged. Anything that can be generally accepted for settling of debts and used for performing financial transactions is being referred to as money in the olden days. Many countries in the world have a generally acceptable and commonly used currency among their citizenry. The 21st century application and usage of money has transcended the notion and belief of the existence of money in the form of regular bank notes and coins. Nowadays, digital currency, electronic money or electronic currency is being in use with quite an appreciable number of people inclining their insight towards its effective usage and more countries adopting it for financial transactions as against the conventional forms of money. This paper surveys a number of related literatures to give a clearer and broader explanation of the concept of digital currency, the various forms in which digital currency exists. A comparison of the degree of acceptability of different digital currencies was discussed with the mode of operation of digital currency. However, prospects and challenges for the adoption of digital currency as a tool for national development were also highlighted.

The EUrASEANs: journal on global socio-economic dynamics, 2021

This study intends to sort out what will be the normal choices of the customary financial frameworks and how the world economy will draw in and manage those normal other options. Since technological improvement is profoundly quick and momentous, it is imperative to comprehend the discernments, practices, correspondence, and the possibility of selection of those other options. Advanced monetary standards and cryptographic forms of money are non-customary financial monetary forms that depend on something referred to as blockchain innovation. There is an excessive number of advanced digital forms of money these days, all of them having their own attributes and specificities. A portion of those advanced digital currencies will be studied in this research. It is imperative to mention here that only one out of every odd nation acknowledges the progress in this area, and such nations arrangement are often influenced by their World Bank rank — low, lower-middle, upper-middle, and high-inco...

IGI Global, 2020

The purpose of this study is to explore the determinants of bitcoin adoption among individuals and also to assess whether the usage of the bitcoin technology for payment of transactions is preferable to other modes of payment. The study proposed a conceptual model analyzing the driving factors that influence a behavior towards the utilization of bitcoins in a developing economy, Ghana, through the lens of the unified theory of acceptance and use of technology model. A qualitative method which employed a purposive sampling technique in the selection of twelve respondents who understand and utilize the bitcoin technology was used. The findings showed that majority of the respondents were exceptionally positive about the idea of bitcoin and had the goal to keep utilizing it, on conditions with respect to the usefulness, the ease of use, the secureness, and the price value of bitcoin. The study offers practitioners with a framework based on theory that goes beyond not only investigating the adoption but also to assess the impact in utilizing bitcoin for organizational benefits.