Understanding the adoption of cryptocurrencies for financial transactions within a high-risk context

Abstract

PurposeCryptocurrencies such as bitcoins represent a novel method of conducting financial transactions and exchanging money. However, their adoption by the general public remains low. Within countries facing financial distress and characterized by a high level of risk, cryptocurrency adoption might offer opportunities for countering crises. The purpose of this study is to explore the factors that influence individuals' adoption of cryptocurrencies for financial transactions within a high-risk context.Design/methodology/approachTo do so, it presents a behavioral model, which is tested using data collected from a survey of 255 respondents residing in Lebanon. The causal relationships between the different factors and individuals' willingness to use cryptocurrencies were then analyzed through Structural Equation Modeling.FindingsFindings show that financial technology awareness and social influence contribute to reducing perceived risk and increasing individuals' willingness to use cryptocurrencies, while individuals' risk aversion and the presence of regulatory support increase the perceived risk of cryptocurrencies.Originality/valueThe study is among the first to use a human-centered approach to understanding cryptocurrency adoption and takes place within a country that is facing a deep financial crisis. Its outcomes contribute to existing theories of cryptocurrency adoption and provide policymakers with insight into how adoption is unfolding namely in developing countries.

A two-country study on the psychological antecedents to cryptocurrency investment decision-making

“…Gao et al 2013) have argued otherwise. What is even more astonishing is that we find from the Kenya sample that risk disposition is positively correlated with attitudinal beliefs about cryptocurrency investment and further contradicting common knowledge about the negative role that risk disposition potentially plays in shaping beliefs and individual behavior (see also Dabbous et al 2022). A potential explanation for the research finding in Kenya is that individuals with a greater degree of risk aversion might believe that investing in cryptocurrency is a good idea since they could earn reasonable profits from such an investment.…”

“…Risk disposition. In this study, risk disposition broadly refers to the tendency by an individual to avoid risk-related behaviors (Harris et al 2016) and therefore individuals with a high-risk disposition tend to equally develop a lack of appetite for risky endeavours (see also Dabbous et al 2022 for related comment). Put simply, risk disposition in this work connotes risk aversion and, unsurprisingly, this personality-based trait has been reported in the literature to exacerbate technology-based risk factors and consequently leading to non-adoption (Harris et al 2016).…”

“…Risk disposition and attitude. Risk disposition, which measures the degree to which an individual is averse to risk (Harris et al 2016), is an inhibitor to investment decision-making (Ainia and Lutfi 2019;Dabbous et al 2022). Thus, suggesting that individuals who have little or no appetite for risky endeavours will be very less comfortable and reluctant to invest their money in a financial product such as cryptocurrency that is very speculative and (somewhat) opaque in nature.…”

Cryptocurrency adoption and continuance intention among Indians: moderating role of perceived government control

“…Cryptocurrency has emerged as an important technology-enabled digital currency facilitating consumers’ requirements for flexible, convenient and time-efficient payment systems (Huang, 2019; Salcedo and Gupta, 2021). Cryptocurrencies, which are seen as cutting-edge Fintech technologies, have grown quickly (Liu et al , 2022), disrupted financial markets and altered how the global economy functions (Albayati et al , 2020; Dabbous et al , 2022). However, the reactions towards cryptocurrency are generally mixed in nature ranging from the great invention to security concerns (Huang, 2019; Mendoza-Tello et al , 2019).…”

Exploring Cryptocurrency Readiness Among University Students

“…There have been a number of studies analysing the effect of Perceived Risk on the intention to use the financial technologies in many contexts with inconsistent results. Referring to studies toward the adoption of mobile banking in rural areas, Perceived Risk is significantly shown as influencing mobile banking adoption in rural locations in terms of descriptions (Kishore & Sequeira, 2016;Dabbous, Sayegh & Barakat, 2022). According to Shaikh, Glavee-Geo, and Karjaluoto (2018), Perceived Risk has a weak direct relationship with behavioural intention to use mobile banking.…”