| Abstract: | Briefly, the research objective is to assess the challenges and prospects (possibility) in practicing Cryptocurrency both nationally and personally in terms of financial freedom, financial privacy & convenience. Additionally, the study assesses the general capability of the countries multibillion birr infrastructures and legal status. Respondent’s data were collected using semi self-structured questionnaire containing 18 open ended questions and 10 interview questions that gather information on Challenge and possibility of Cryptocurrency in Ethiopia. Quantitative data obtained were organized and analyzed through using descriptive statistical data analysis methods such as frequencies, percentiles, measures of central tendency mainly mean & standard deviation were used so that the research could come to a conclusion. As for the qualitative data gathered from interviews and other secondary sources were theamatized & analyzed accordingly, also a narrative approach were used to present the results of the interviews. To ensure there exists an internal consistency between the mentioned variables within the research, the researcher has employed a “Cronbach Alpha” test for data reliability, the results indicate that there is a good level of internal consistency amongst the tested items and variables of the study. The research findings indicate the technology can facilitate currency exchange, money transfer and payment in an open and fast platform for the entire community & it also has the capacity to ease up the complex cross border business transactions and cut down the expensive transaction cost incurred in banks. Cryptocurrency revolutionizes the idea of banking from an angle of time & energy efficiency by reducing the manual and even automated services. Although the national bank of Ethiopia has the capability of enacting laws by which cryptocurrency users could abide by and use for various purpose alongside fiat currency, it has chosen to restrict its use within the national border. The major research findings indicate that sectors and or parties who have leverage on sociopolitical and socioeconomic area shall protect the sector from political & economic trajectory derailment. It’s also recommended that strengthening and improving the cyber security system to boost the governmental leverage to control and monitor Cryptocurrency activities in particular and for finance security in general is mandatory, finally major attitudinal change by the government, finance security agency & the national bank of Ethiopia should be made in terms of decriminalizing and implementing of policies or at least liberalize the use in Ethiopia. |
