Exploring the Barriers against Using Cryptocurrencies in Managing Construction Supply Chain Processes

Abstract

Various stakeholders are involved in managing supply chain processes in construction. Suppliers can hardly tolerate upfront costs when faced with flaws in the payment pipeline. This is a serious problem in building construction that uses a large variety of materials as opposed to civil construction that requires fewer types of materials. Alternative secure payment systems are needed, and the use of cryptocurrencies can be an option. However, cryptocurrencies are seldom used in building construction projects due to several challenges that are mostly ignored in the existing literature. To fill this gap, this study investigates the use of cryptocurrencies in construction supply chains as an alternative payment solution to improve the financial performance of the stakeholders by taking advantage of this economical and traceable financial transaction system. The study involves exploratory, descriptive, and empirical survey research. Accordingly, a literature review, focus group discussions, and statistical analyses (Friedman test, Wilcoxon test, and Mann–Whitney U test) were performed. The results imply that a lack of technical knowledge about cryptocurrencies, fluctuations in the value of cryptocurrencies, limited market opportunities, security gaps, personal information required by cryptocurrency systems, no assurance of permanent use, and government actions limiting the use of cryptocurrencies were the most significant barriers against using cryptocurrencies in construction supply chain management. The findings are expected to provide critical information to construction professionals and regulatory agencies about the potential advantages and shortcomings of cryptocurrencies, hence motivating policymakers to create strategies that minimize the concerns of construction professionals about using cryptocurrencies in the building construction industry.

Illuminating the dark corners: a qualitative examination of cryptocurrency’s risk

“…Despite the development of a substantial body of research focusing on specific aspects of cryptocurrency’s dark side (Wronka, 2022; Leuprecht et al , 2022; Mackenzie, 2022), there is a limited understanding of how new technologies, such as blockchain-based cryptocurrency, are used for illicit purposes and how the broader spectrum of its dark sides is illuminated. Concerns have also been expressed concerning the under-theorisation of this study stream, with a concentration on manifestations of the dark side rather than the broad term linked with cryptocurrency’s negative sides (Gurgun et al , 2022; Fonseca et al , 2020). Our research serves as a first step towards filling these gaps.…”

“…Previous research conducted by scholars such as Wronka (2022), Leuprecht et al (2022) and Mackenzie (2022) has only investigated singular aspects, mainly the phenomenon of money laundering via cryptocurrency. Fonseca et al (2020) examined only psychological barriers to cryptocurrency adoption, while Gurgun et al (2022) explored the barriers to using cryptocurrency in managing the construction supply process using the empirical approach. Alqahtani and Sheldon (2022) conducted a systematic review of crypto-ransomware attack detection methodologies.…”

Cryptocurrencies as Legal Tender: Opportunities and Obstacles for Russia

“…В работе [5] авторы обращают внимание на проблемы, связанные с контролем криптовалют и проблемами налогообложения, а также на экологические проблемы, обусловленные высоким потреблением электроэнергии. В исследовании [6] определены наиболее значимые препятствия для использования криптовалют по различным категориям барьеров, таким как технические, рыночные, регуляторные и барьеры, связанным с вопросами информационной безопасности. Главными барьерами на пути массового использования криптовалют по результатам исследования являются отсутствие технических знаний о криптовалютах, пробелы в безопасности из-за уязвимости кошельков, большая амплитуда колебаний стоимости криптовалюты и ограниченная ликвидность рынка, возможные действия регулятора по ограничению или запрету использования криптовалют.…”

Assessment of barriers to the implementation of blockchain technology in construction supply chain management in Nigeria

“…Their study focused on the logistics industry. Gurgun et al (2022) investigated the obstacles that prevent the use of cryptocurrencies in managing construction supply chain in the Turkish construction industry. Furthermore, Akinradewo et al (2022) evaluated the barriers that prevent the implementation of blockchain technology in the built environment of South Africa.…”

“…Their study focused on the logistics industry. Gurgun et al . (2022) investigated the obstacles that prevent the use of cryptocurrencies in managing construction supply chain in the Turkish construction industry.…”