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

Author

Listed:
  • Amal Dabbous
  • May Merhej Sayegh
  • Karine Aoun Barakat

Abstract

Purpose - Cryptocurrencies 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/approach - To 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. Findings - Findings 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/value - The 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.

Suggested Citation

  • Amal Dabbous & May Merhej Sayegh & Karine Aoun Barakat, 2022. "Understanding the adoption of cryptocurrencies for financial transactions within a high-risk context," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(4), pages 349-367, May.
    • Handle: RePEc:eme:jrfpps:jrf-10-2021-0169
    DOI: 10.1108/JRF-10-2021-0169
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    Citations

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    Cited by:

    1. Tiwari, Sunil, 2024. "Impact of Fintech on natural resources management: How financial impacts shape the association?," Resources Policy, Elsevier, vol. 90(C).
    2. Yongzhi Gong & Xiaofei Tang & En-Chung Chang, 2023. "Group norms and policy norms trigger different autonomous motivations for Chinese investors in cryptocurrency investment," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    3. José Campino & Bruna Rodrigues, 2024. "From CFOs to crypto: exploratory study unraveling factors in corporate adoption," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-24, December.
    4. Awais, Minahil & Afzal, Ayesha & Firdousi, Saba & Hasnaoui, Amir, 2023. "Is fintech the new path to sustainable resource utilisation and economic development?," Resources Policy, Elsevier, vol. 81(C).
    5. Cascavilla, Alessandro, 2024. "Between money and speculative asset: The role of financial literacy on the perception towards Bitcoin in Italy," Journal of Economic Psychology, Elsevier, vol. 102(C).
    6. Arpaci, Ibrahim, 2023. "Predictors of financial sustainability for cryptocurrencies: An empirical study using a hybrid SEM-ANN approach," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

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