An investigation on the drivers and inhibitors of cryptocurrency in Malta

Abstract

This study investigated the drivers and inhibitors of cryptocurrency in Malta. It also explored the challenges towards regulating and implementing such a technology. This was done in order to identify the perspectives of local industry on the utility of cryptocurrencies. A self-designed interview schedule was used to conduct interviews with key participants gathered through purposive sampling. Industry and regulatory bodies formed part of the study sample. Interviews were analysed and over-arching themes were drawn highlighting the perspectives of the participants. From these individuals it was revealed that cryptocurrencies hold promise for business applications in Malta. Additionally, regulatory shortcomings were also identified as the key inhibitor towards cryptocurrency adoption. Heavily regulated sectors expressed the most hesitancy towards cryptocurrency adoption. The blockchain technology behind cryptocurrencies was found to be of interest amongst the local participants due to its versatility. It can be concluded that whilst the benefits of cryptocurrencies are well known and acknowledged, regulations that do not hinder the versatility of the technology are required in order to secure a promising local adoption of cryptocurrencies especially due to salient issues regarding user anonymity and fear of illicit use.