Exploring Barriers to Blockchain Adoption in the Danish Banking Sector

Abstract

In the years following its emergence, blockchain was lauded as a disruptive technology poised to revolutionise socio-economic systems and industries, notably finance. Yet despite initial enthusiasm, widespread adoption does not appear to have materialised, such as within the Danish banking sector. To that end, this study aims to explore the perceived barriers to blockchain adoption for organisations within the field. It also seeks to understand blockchain adoption and its barriers through the lens of Swanson & Ramiller’s (1997) organising vision theory. Through a sectoral study based on semi-structured interviews, rich qualitative data was generated to paint a nuanced picture of these barriers. The findings revealed the difficulties of integrating such a radical technology into a long-established sector – with 10 barriers spanning the organisational, technological, and environmental realms. To get deeper insights into the relationships between these, five contradictions and tensions were identified. Ultimately, this paper argues that the barriers are emblematic of a larger issue – the deep misalignment between the nature of blockchain and the reality of the sector, with decentralisation at the heart of the problem. It also discusses the numerous theoretical implications of the data, including how elements of the blockchain adoption process may be understood. Additionally, several practical recommendations are outlined for organisations, advocacy groups or regulators in the sector. This paper adds to existing literature with in-depth, sector-specific analyses of barriers, built on rich primary data. It also offers a valuable contribution to discourse on blockchain adoption by taking a holistic examination of barriers, which are typically discussed in isolation, while further demonstrating the value of using of paradox and contradictions for analysis.