How Nigerian Retailers Use Cryptocurrency for Cross-Border Trade with China: A Sociotechnical Perspective on Crypto Adoption in Developing Economies

Illustrative Image: How Nigerian Retailers Use Cryptocurrency for Cross-Border Trade with China: A Sociotechnical Perspective on Crypto Adoption in Developing Economies
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A recent study by David, M. J., & Addo, A. (2025) titled “Cryptocurrency use for cross-border payments: understanding the popularity of crypto among Nigerians importing from China” published in Information technology & people reveals that cryptocurrency adoption is a dynamic, sociotechnical process shaped by technology adaptation, actor coalitions, and complex contextual influences in developing economies.

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Cryptocurrency adoption in Nigeria is driven by sociotechnical dynamics, including economic instability, actor networks, and local adaptation strategies for trade.
– David, M. J., & Addo, A. 2025

This study explores the growing use of cryptocurrency for cross-border payments by Nigerian retailers importing goods from China, shedding light on an emerging trend in which developing countries exhibit higher rates of crypto adoption than many advanced economies—contrary to typical technology diffusion patterns. Using a qualitative case study approach informed by Actor-Network Theory (ANT), the research draws on two rounds of in-depth interviews with key stakeholders, including Nigerian importers, Chinese suppliers, crypto brokers, mediators, and informal exchangers. This sociotechnical lens enables the study to unpack the complex interplay of actors and forces that shape crypto use in this context. These insights challenge conventional, tech-centric narratives of crypto adoption. The study contributes a context-sensitive sociotechnical framework for understanding cryptocurrency adoption in developing economies, emphasizing relational processes over deterministic models. It offers valuable implications for policymakers, businesses, and development institutions aiming to design inclusive financial systems and address adoption challenges in similar regions. By centering the lived experiences and adaptive strategies of local actors, the research advances a deeper, more nuanced understanding of financial innovation in the Global South.

How the Study was Conducted

This study employed a qualitative case study approach to examine the use of cryptocurrency for cross-border payments by Nigerian retailers importing goods from China. Drawing on Actor-Network Theory (ANT), the research analyzed the complex relationships among the various human and non-human actors involved in cryptocurrency adoption. Data was collected through two rounds of interviews with key stakeholders, including Nigerian retailers who actively use cryptocurrencies for payments, Chinese suppliers accepting these payments, informal currency exchangers, and crypto brokers and mediators facilitating transactions. Using ANT as an analytical lens, the researchers explored how these actors—alongside non-human elements such as blockchain platforms and government regulations—interact and influence each other. The analysis revealed several key themes. First, cryptocurrency use in this context is marked by technology transformation, where users repurpose digital currencies beyond their original design to meet local needs. Second, strong coalitions among diverse actors—retailers, suppliers, exchangers, and brokers—are essential to enabling and sustaining crypto transactions. Finally, contextual factors, particularly Nigeria’s political and economic instability, significantly shape the adoption and adaptation of cryptocurrency technologies. Overall, the study offers empirical insights into how cryptocurrency adoption is negotiated and localized in developing economies.

What the Authors Found

The authors found that cryptocurrency adoption for cross-border payments in Nigeria is driven by several interconnected factors rather than just technological benefits. The findings reveal that cryptocurrency adoption is not merely a matter of technical utility, but a dynamic process driven by the transformation of existing technologies, the formation of strong coalitions among diverse actors, and the influence of intersecting political, economic, social, technological, and legal factors.

Why is this important

This study is important because it sheds light on the unexpectedly high adoption rates of cryptocurrency in developing countries, particularly in Nigeria. Unlike most technologies, which tend to be adopted more slowly in these regions, cryptocurrency is widely used for cross-border payments, especially by retailers importing from China.

Challenges Existing Theories – The study moves beyond techno-deterministic views that assume adoption is purely based on technical advantages. Instead, it highlights sociotechnical factors like economic instability, distrust in financial institutions, and regulatory uncertainty.

Financial Inclusion & Innovation – By exploring how retailers use crypto as a solution to foreign currency restrictions and high transaction costs, the study provides insights into how decentralized finance might bridge gaps in traditional banking systems.

Policy & Development Implications – Governments and financial institutions interested in cryptocurrency regulation can learn from these findings to develop policies that support innovation while managing risks.

Understanding Adoption in Volatile Markets – The study reveals how Nigerian retailers navigate cryptocurrency adoption amid inflation, currency instability, and complex trade relationships—offering lessons for other developing economies facing similar challenges.

What the Authors Recommended

• Policymakers and stakeholders should view cryptocurrency adoption not merely as a technological shift, but as a sociotechnical process shaped by economic instability, trade constraints, and regulatory gaps. This broader understanding can lead to more effective, context-sensitive policy development.
• Governments should avoid blanket bans and instead create inclusive policies that acknowledge cryptocurrency’s role in facilitating cross-border trade. Regulatory strategies should be informed by the lived realities of users and designed to support innovation while ensuring financial stability.
• Traditional financial institutions should study the practices of crypto brokers and informal exchangers to design flexible, low-cost cross-border payment systems. Banks can benefit by integrating blockchain-based remittance services tailored to the needs of small-scale retailers and informal traders.
• Successful regulation requires recognizing the coalition of human and non-human actors involved in cryptocurrency use. Policymakers should engage retailers, brokers, suppliers, and intermediaries to ensure that new rules enhance, rather than disrupt, existing networks and practices.
• Further empirical studies are needed to explore how cryptocurrencies are adapted across different socio-economic and cultural contexts. Special attention should be given to informal trading networks to uncover practical insights that can shape future financial inclusion and digital trade strategies.

In conclusion, the study by David and Addo offers a groundbreaking perspective on cryptocurrency adoption in developing economies, highlighting the intricate sociotechnical dynamics at play. By focusing on the lived experiences of Nigerian retailers engaged in cross-border trade with China, the research challenges conventional technology diffusion models and emphasizes the importance of local agency, adaptive strategies, and context-specific conditions. These insights are crucial for policymakers, financial institutions, and development actors aiming to craft inclusive, effective solutions that harness the transformative potential of digital finance while addressing the unique challenges faced by the Global South.