IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-023-02528-7.html
   My bibliography  Save this article

Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone

Author

Listed:
  • Muhammad Farrukh Shahzad

    (Beijing University of Technology)

  • Shuo Xu

    (Beijing University of Technology)

  • Weng Marc Lim

    (Sunway University
    Swinburne University of Technology
    Swinburne University of Technology)

  • Muhammad Faisal Hasnain

    (University of Agriculture)

  • Shahneela Nusrat

    (Beijing University of Technology)

Abstract

Cryptocurrencies—i.e., digital or virtual currencies secured by cryptography based on blockchain technology, such as Bitcoin and Ethereum—have brought transformative changes to the global economic landscape. These innovative transaction methods have rapidly made their mark in the financial sector, reshaping the dynamics of the global economy. However, there remains a notable hesitation in its widespread acceptance and adoption, largely due to misconceptions and lack of proper guidance about its use. Such gaps in understanding create an opportunity to address these concerns. Using the technology acceptance model (TAM), this study develops a parsimonious model to explain the awareness, acceptance, and adoption of cryptocurrency. The model was assessed using partial least squares structural equation modeling (PLS-SEM) with a sample of 332 participants aged 18 to 40 years. The findings suggest that cryptocurrency awareness plays a direct, positive, and significant role in shaping cryptocurrency adoption and that this positive relationship is mediated by factors that exemplify cryptocurrency acceptance, namely the ease of use and usefulness of cryptocurrency. The results also reveal that trust is a significant factor that strengthens these direct and mediating relationships. These insights emphasize the necessity of fostering an informed understanding of cryptocurrencies to accelerate their broader adoption in the financial ecosystem. By addressing the misconceptions and reinforcing factors like ease of use, usefulness, and trust, policymakers and financial institutions can better position themselves to integrate and promote cryptocurrency in mainstream financial systems.

Suggested Citation

  • Muhammad Farrukh Shahzad & Shuo Xu & Weng Marc Lim & Muhammad Faisal Hasnain & Shahneela Nusrat, 2024. "Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-023-02528-7
    DOI: 10.1057/s41599-023-02528-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-023-02528-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-023-02528-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zou, Zongsen & Liu, Xindi & Wang, Meng & Yang, Xinze, 2023. "Insight into digital finance and fintech: A bibliometric and content analysis," Technology in Society, Elsevier, vol. 73(C).
    2. Romi Kher & Siri Terjesen & Chen Liu, 2021. "Blockchain, Bitcoin, and ICOs: a review and research agenda," Small Business Economics, Springer, vol. 56(4), pages 1699-1720, April.
    3. Saliha Theiri & Ramzi Nekhili & Jahangir Sultan, 2022. "Cryptocurrency liquidity during the Russia–Ukraine war: the case of Bitcoin and Ethereum," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 59-71, October.
    4. Farrukh Shahzad & Muhammad Farrukh Shahzad & Azer Dilanchiev & Muhammad Irfan, 2022. "Modeling the Influence of Paternalistic Leadership and Personality Characteristics on Alienation and Organizational Culture in the Aviation Industry of Pakistan: The Mediating Role of Cohesiveness," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    5. Hoda M. Aboalsamh & Laith T. Khrais & Sami A. Albahussain, 2023. "Pioneering Perception of Green Fintech in Promoting Sustainable Digital Services Application within Smart Cities," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    6. Allen, Franklin & Gu, Xian & Jagtiani, Julapa, 2022. "Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China," Journal of International Money and Finance, Elsevier, vol. 124(C).
    7. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & József Popp & Judit Oláh, 2023. "Cryptocurrency Acceptance Model to Analyze Consumers’ Usage Intention: Evidence From Pakistan," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Muhammad Athar Nadeem & Zhiying Liu & Abdul Hameed Pitafi & Amna Younis & Yi Xu, 2021. "Investigating the Adoption Factors of Cryptocurrencies—A Case of Bitcoin: Empirical Evidence From China," SAGE Open, , vol. 11(1), pages 21582440219, March.
    9. Albayati, Hayder & Kim, Suk Kyoung & Rho, Jae Jeung, 2020. "Accepting financial transactions using blockchain technology and cryptocurrency: A customer perspective approach," Technology in Society, Elsevier, vol. 62(C).
    10. José Moleiro Martins & Muhammad Farrukh Shahzad & Shuo Xu, 2023. "Factors influencing entrepreneurial intention to initiate new ventures: evidence from university students," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-27, December.
    11. Saliha Theiri & Ramzi Nekhili & Jahangir Sultan, 2022. "Cryptocurrency liquidity during the Russia–Ukraine war: the case of Bitcoin and Ethereum," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 59-71, October.
    12. Jalan, Akanksha & Matkovskyy, Roman & Urquhart, Andrew & Yarovaya, Larisa, 2023. "The role of interpersonal trust in cryptocurrency adoption," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    13. Ergün Hasgül & Mustafa Karataş & Merve Deniz Pak Güre & Veli Duyan, 2023. "A perspective from Turkey on construction of the new digital world: analysis of emotions and future expectations regarding Metaverse on Twitter," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    14. 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.
    15. Satish Kumar & Weng Marc Lim & Uthayasankar Sivarajah & Jaspreet Kaur, 2023. "Artificial Intelligence and Blockchain Integration in Business: Trends from a Bibliometric-Content Analysis," Information Systems Frontiers, Springer, vol. 25(2), pages 871-896, April.
    16. Rashedul Hasan & Mohammad Dulal Miah & M. Kabir Hassan, 2022. "The nexus between environmental and financial performance: Evidence from gulf cooperative council banks," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2882-2907, November.
    17. Clay M. Voorhees & Michael K. Brady & Roger Calantone & Edward Ramirez, 2016. "Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 119-134, January.
    18. Abderahman Rejeb & Karim Rejeb & Khalil Alnabulsi & Suhaiza Zailani, 2023. "Tracing Knowledge Diffusion Trajectories in Scholarly Bitcoin Research: Co-Word and Main Path Analyses," JRFM, MDPI, vol. 16(8), pages 1-23, July.
    19. Yongzhi Gong & Xiaofei Tang & En-Chung Chang, 2023. "Correction: Group norms and policy norms trigger different autonomous motivations for Chinese investors in cryptocurrency investment," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-1, December.
    20. Satish Kumar & Weng Marc Lim & Nitesh Pandey & J. Christopher Westland, 2021. "20 years of Electronic Commerce Research," Electronic Commerce Research, Springer, vol. 21(1), pages 1-40, March.
    21. Li, Jiaqi, 2023. "Predicting the demand for central bank digital currency: A structural analysis with survey data," Journal of Monetary Economics, Elsevier, vol. 134(C), pages 73-85.
    22. Ruzita Abdul-Rahim & Siti Aisah Bohari & Aini Aman & Zainudin Awang, 2022. "Benefit–Risk Perceptions of FinTech Adoption for Sustainability from Bank Consumers’ Perspective: The Moderating Role of Fear of COVID-19," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qianwen Li & Zhilong Chen & Jialin Min & Mengjie Xu & Yanhong Zhan & Wenyue Zhang & Chuanwang Sun, 2024. "Hybrid transaction model for optimizing the distributed power trading market," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    2. Shahzad, Muhammad Farrukh & Xu, Shuo & An, Xin & Javed, Iqra, 2024. "Assessing the impact of AI-chatbot service quality on user e-brand loyalty through chatbot user trust, experience and electronic word of mouth," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Farrukh Shahzad & Shuo Xu & Rimsha Baheer, 2024. "Assessing the factors influencing the intention to use information and communication technology implementation and acceptance in China’s education sector," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Kamer-Ainur Aivaz & Ionela Florea Munteanu & Flavius Valentin Jakubowicz, 2023. "Bitcoin in Conventional Markets: A Study on Blockchain-Induced Reliability, Investment Slopes, Financial and Accounting Aspects," Mathematics, MDPI, vol. 11(21), pages 1-20, November.
    3. Chakraborty, Debarun & Polisetty, Aruna & Rana, Nripendra P., 2024. "Consumers' continuance intention towards metaverse-based virtual stores: A multi-study perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Anis Jarboui & Emna Mnif, 2024. "Can Clean Energy Stocks Predict Crude Oil Markets Using Hybrid and Advanced Machine Learning Models?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(4), pages 821-844, December.
    5. Christian Zeiß & Myriam Schaschek & Lisa Straub & Christoph Tomitza & Axel Winkelmann, 2024. "Re-intermediation of the crypto asset ecosystem by banks: An empirical study on acceptance drivers among the populace," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-24, December.
    6. Kumar, Satish & Sureka, Riya & Lucey, Brian M. & Dowling, Michael & Vigne, Samuel & Lim, Weng Marc, 2024. "MetaMoney: Exploring the intersection of financial systems and virtual worlds," Research in International Business and Finance, Elsevier, vol. 68(C).
    7. Pandey, Dharen Kumar & Assaf, Rima & Rai, Varun Kumar, 2023. "Did the Indian stock market sail the Russia-Ukraine storm safely?," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    8. Azzone, Michele & Barucci, Emilio, 2023. "Evaluation of sight deposits and central bank digital currency," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    9. Pandey, Dharen Kumar & Lucey, Brian M. & Kumar, Satish, 2023. "Border disputes, conflicts, war, and financial markets research: A systematic review," Research in International Business and Finance, Elsevier, vol. 65(C).
    10. Ustaoglu, Erkan, 2023. "Diversification, hedge, and safe-haven properties of gold and bitcoin with portfolio implications during the Russia–Ukraine war," Resources Policy, Elsevier, vol. 84(C).
    11. Abakah, Emmanuel Joel Aikins & Abdullah, Mohammad & Tiwari, Aviral Kumar & Wali Ullah, G M, 2024. "Asymmetric dynamics between geopolitical conflict sentiment and cryptomarkets," Research in International Business and Finance, Elsevier, vol. 69(C).
    12. Bommer, William H. & Milevoj, Emil & Rana, Shailesh, 2023. "The intention to use cryptocurrency: A meta-analysis of what we know," Emerging Markets Review, Elsevier, vol. 55(C).
    13. Mirza, Nawazish & Umar, Muhammad & Mangafic, Jasmina, 2023. "Covid-19 vaccines and investment performance: Evidence from equity funds in European Union," Finance Research Letters, Elsevier, vol. 53(C).
    14. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    15. Wu, WenTing & Chen, XiaoQian & Zvarych, Roman & Huang, WeiLun, 2024. "The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    16. Svetlana Abramova & Rainer Böhme & Helmut Elsinger & Helmut Stix & Martin Summer, 2022. "What can CBDC designers learn from asking potential users? Results from a survey of Austrian residents (Svetlana Abramova, Rainer Böhme, Helmut Elsinger, Helmut Stix, Martin Summer)," Working Papers 241, Oesterreichische Nationalbank (Austrian Central Bank).
    17. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    18. Wang, Le & Luo, Xin (Robert) & Li, Han, 2022. "Envy or conformity? An empirical investigation of peer influence on the purchase of non-functional items in mobile free-to-play games," Journal of Business Research, Elsevier, vol. 147(C), pages 308-324.
    19. Michael Lloyd, 2022. "The Future of Money: Central Bank Digital Currencies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 50(3), pages 85-98, December.
    20. Mahadzirah Mohamad & Asyraf Afthanorhan* & Zainudin Awang & Morliyati Mohammad, 2019. "Comparison Between CB-SEM and PLS-SEM: Testing and Confirming the Maqasid Syariah Quality of Life Measurement Model," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(3), pages 608-614, 03-2019.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-023-02528-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.