A recent study by Sithole et al. (2025) titled “A Review of Blockchain and Cryptocurrency in the South African Banking” published in EOM Society International reveals that blockchain and cryptocurrency technologies have the potential to significantly impact the South African banking sector.
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Blockchain and cryptocurrency technologies have significant potential to impact South African banking, despite adoption challenges.– Sithole et al. 2025
The article delves into blockchain and cryptocurrency in the South African banking sector. It explores the applications, trends, challenges, and innovations of blockchain technology and cryptocurrencies. The study aims to provide insights into how these technologies can bring value to the finance industry in South Africa. It also discusses the current state of blockchain and cryptocurrency adoption in the country, highlighting the challenges such as education and infrastructure readiness. The study is based on a literature review of sources from 2018 to 2022 and includes a survey of respondents’ views on the use of these technologies. The authors conclude that while South Africa has a long way to go in fully adopting blockchain and cryptocurrencies, there is hope for future adoption as the country continues to evolve.
How the Study was Conducted
The authors employed a comprehensive literature review and a survey. The authors reviewed 142 sources, including articles, reviews, conference papers, and journals, from 2018 to 2022. Out of these, 24 sources were identified as suitable for the study. The literature review focused on blockchain and cryptocurrency applications, trends, challenges, and innovations. Additionally, the study used a survey to collect data on respondents’ views on the use of blockchain and cryptocurrencies. The survey included questions about the respondents’ age, educational background, and their use of virtual currencies for economic transactions. The data collected from the survey helped to understand the current state of blockchain and cryptocurrency adoption in South Africa and the challenges faced in this process.
What the Authors Found
The authors found that blockchain and cryptocurrency technologies have the potential to significantly impact the South African banking sector. However, the adoption of these technologies is still in its early stages, and there are several challenges that need to be addressed. These challenges include a lack of education and awareness about blockchain and cryptocurrencies, as well as infrastructure readiness. The study also revealed that younger generations, particularly millennials and Generation Z, are more likely to be interested in and use blockchain and cryptocurrency technologies. The survey results showed that respondents with higher education levels were more likely to use these technologies.
Why is this important?
This study provides valuable insights into the potential impact of blockchain and cryptocurrency technologies on the South African banking sector. By understanding the current state of adoption, challenges, and opportunities, stakeholders can make informed decisions about implementing these technologies. The study highlights the need for education and infrastructure development to fully realize the benefits of blockchain and cryptocurrencies. Additionally, it offers a benchmark for other industries and countries looking to adopt similar technologies, contributing to the global understanding of blockchain and cryptocurrency applications.
What the authors recommended
The authors recommend several actions to enhance the adoption and implementation of blockchain and cryptocurrency technologies in South Africa:
- Education and Awareness: Increasing education and awareness about blockchain and cryptocurrencies among the general public and within the financial sector. This includes integrating blockchain and cryptocurrency topics into educational curricula and providing training programs for professionals.
- Infrastructure Development: Improving the technological infrastructure to support the adoption of blockchain and cryptocurrencies. This includes investing in reliable internet connectivity and cybersecurity measures to ensure safe and efficient transactions.
- Regulatory Framework: Developing a clear and supportive regulatory framework that encourages innovation while protecting consumers. This involves collaboration between the government, financial institutions, and technology providers to create policies that foster the growth of blockchain and cryptocurrency technologies.
- Public-Private Partnerships: Encouraging partnerships between the public and private sectors to drive the adoption of blockchain and cryptocurrencies. These partnerships can help leverage resources, expertise, and networks to promote the use of these technologies in various industries.
- Research and Development: Supporting ongoing research and development in blockchain and cryptocurrency technologies. This includes funding research projects, fostering innovation hubs, and encouraging collaboration between academic institutions and industry players.
In conclusion, while the adoption of blockchain and cryptocurrency technologies in the South African banking sector is still in its early stages, the potential for significant transformation is evident. The study highlights key challenges, such as the need for increased education, infrastructure development, and a clear regulatory framework. However, it also points to promising opportunities, particularly among younger generations and highly educated individuals. By addressing these challenges and fostering collaboration between the public and private sectors, South Africa can position itself as a leader in blockchain and cryptocurrency adoption, driving innovation and economic growth in the financial sector.
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