Acceptance and Use of Cryptocurrency in Saudi Arabia: A Case Study of Bitcoins

Abstract

This study focused on the Unified Theory of Acceptance and Use of Technology (UTAUT2) and the possibility of its application, to determine the most important variables that affect users' acceptance of cryptocurrencies (especially Bitcoin). Determining the key factors that affect the acceptance and use of Bitcoin by adult individuals with basic knowledge of the Internet in Saudi Arabia. The results showed that value of the adjusted R2 is 0.859, which indicates that the independent variables have the ability to explain 85.9% of the change in the dependent variable, there is significant and positive linear relationship between performance expectancy, effort expectancy, al shariah compliance, price value and behavioral intention to use Bitcoin in Saudi Arabia, There is no significant linear relationship between social influence and facilitating conditions toward the user's behavioral intention to use Bitcoin. There is a significant and negative relationship between perceived risk and the user's behavioral intention to use Bitcoin. It shows that many users still treat Bitcoin with care because there is no legal legislation and Bitcoin is still not compatible with Islamic trading perspective. The research recommended the following:1-The perceived risk of cryptocurrency transactions is very high, therefore policymakers in arab countries need to issue laws regarding the use of cryptocurrency and protect its users . 2-Factors that could be included in future research are legislation influence and sustainability of cryptocurrencies.3-There should be more workshops or seminars about Bitcoin in order to educate people in Arab countries about its benefits. This kind of activities should be organized not only by government but also Bitcoin groups and forums.