Blockchain Adoption Barriers in Developing Countries

Abstract

Blockchain technology has emerged as one of the most disruptive innovations of the 21st century, offering decentralization, transparency, immutability, and enhanced security across diverse sectors such as finance, supply chain, healthcare, land registries, and governance. Despite its transformative potential, adoption in developing countries remains slow, fragmented, and burdened with multiple obstacles. This study explores the systemic, technological, regulatory, and socio-cultural barriers impeding blockchain adoption in low- and middle-income nations. Using a mixed-method approach combining secondary data analysis, structured surveys from 500 stakeholders across five regions, and qualitative case studies from India, Kenya, and Nigeria, the research identifies five major categories of barriers: (i) inadequate digital and financial infrastructure, (ii) regulatory uncertainty and inconsistent policy frameworks, (iii) high costs of implementation and limited financial resources, (iv) low levels of awareness and digital literacy, and (v) institutional and cultural resistance to disruptive technologies. Statistical analysis reveals that infrastructure deficits (37%) and regulatory uncertainty (28%) account for nearly two-thirds of adoption challenges, followed by cost burdens (15%), awareness gaps (12%), and cultural resistance (8%).

The results emphasize that blockchain adoption is not simply a matter of technological readiness but also of institutional maturity, socio-economic capability, and political will. In particular, the findings highlight how weak governance structures, limited access to digital tools, and lack of cross-border regulatory harmonization hinder sustainable adoption. Case evidence suggests that where pilot programs succeed—such as mobile payments in Kenya or blockchain-based land record systems in India—they are supported by enabling ecosystems, strong partnerships, and policy backing. The study makes a unique contribution by quantitatively mapping the significance of different barriers across multiple regions while situating them within broader discourses of digital inclusion and technological equity. Recommendations include capacity-building programs, collaborative governance, hybrid blockchain models adapted for low-resource settings, and integration of blockchain with existing development agendas.