Adoption of cryptocurrencies in small and medium-sized enterprises: A strategic approach to enhancing financial inclusion and innovation

Njideka Ihuoma Okeke 1, *, Godwin Ozoemenam Achumie 2 and Somto Ewim 3

1 Independent Researcher, Washington, United States.
2 Independent Researcher, Australia.
3 Independent Researcher, USA.
 
Review
International Journal of Frontiers in Science and Technology Research, 2024, 07(02), 001–010.
Article DOI: 10.53294/ijfstr.2024.7.2.0051
Publication history: 
Received on 28 August 2024; revised on 05 October 2024; accepted on 08 October 2024
 
Abstract: 
This review paper explores cryptocurrency adoption's strategic benefits and challenges for small and medium-sized enterprises (SMEs), emphasizing its potential to enhance financial inclusion and drive innovation. The paper overviews cryptocurrencies' history, key characteristics, and current adoption trends in various sectors. The paper examines the importance of financial inclusion and innovation for SMEs through a comprehensive literature review, highlighting how cryptocurrencies can reduce transaction costs, increase access to global markets, and improve financial transparency and security. The analysis also addresses the significant challenges SMEs face, such as regulatory and legal issues, technological and operational barriers, and market volatility. Practical recommendations for SMEs considering cryptocurrency adoption are provided, including steps for compliance, technological integration, risk management, and leveraging new business models. This paper aims to offer a balanced perspective, guiding SMEs in navigating the complexities of cryptocurrency adoption while maximizing its benefits.

 

Keywords: 
Cryptocurrency Adoption; Financial Inclusion; SME Innovation; Blockchain Technology; Regulatory Challenges; Risk Management
 
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