Appraising the application of cryptocurrency technologies in the Nigerian built environment: stakeholders’ perspective

Abstract

PurposeTwenty-first century digitalisation birthed new methods of payment systems like the emergence of cryptocurrencies. Cryptocurrency technologies have been identified as drivers for crypto-smart contracts and procurements. Studies regarding the application of cryptocurrency technologies in the Nigerian built environment industry are uncommon. Therefore, this paper aims to explore the relevance of cryptocurrency technologies to the sector, examine the perceived barriers that may hinder cryptocurrency technologies implementation and propose measures to promote the applications.Design/methodology/approachThe research conducted a virtual interview across Abuja and Lagos cities to appraise stakeholders’ perceptions. The interviewees were requested to proffer answers to the research questions. The study conducted 25 semi-structured interviews with knowledgeable stakeholders. The data were analysed, and findings were reported in themes.FindingsEnhanced the era of smart contracts, increased liquidity for small and medium-sized enterprises (SMEs) and new openings to raise more funds for capital-intensive construction projects emerged as the advantages where cryptocurrency technologies can benefit the sector if allowed to operate. Cryptocurrency technology applications are not without some anticipated hindrances. Risk of loss of investment/price instability, lack of intrinsic value, money laundering, attracting speculators, criminal activities/security issues, lack of clarity and awareness and lack of skills emerged as the frequently anticipated barriers that may hinder cryptocurrency technologies applications.Research limitations/implicationsThe study is limited to cryptocurrency technology applications in Nigeria’s built environment, and a qualitative method has been adopted.Originality/valueBesides uncovering barriers hindering cryptocurrency technology usage via an unexplored mechanism, the study is one of the few studies to proffer measures to improve cryptocurrency technology usage in the built environment.