Does Financial Stability Moderate the Nexus between the Factors and Cryptocurrency Adoption as a Mode of Payment in SME Sector in Sri Lanka

Nuwan. A.n, H.G.K.N. Bandara, D.k Ranasinghe, S. Heenkenda, Damayanthi. B.W.r, A.M. Perera and S.W.G.k Bulankulama
Additional contact information
Nuwan. A.n: Business Management School, Gale Road, Colombo-6
H.G.K.N. Bandara: Department of Economics, University of Rajarata, Mihintale,Sri Lanka.
D.k Ranasinghe: National Institution of Business Management, No 120/5, Vidya Mawatha, Colombo 07
S. Heenkenda: Faculty of Humanities and Social Sciences, University of Sri Jayewardenepura, Sri Lanka.
Damayanthi. B.W.r: Faculty of Humanities and Social Sciences, University of Sri Jayewardenepura, Sri Lanka.
A.M. Perera: Department of Accountancy, University of Wayamba, Sri Lanka
S.W.G.k Bulankulama: Department of Economics, University of Rajarata, Mihintale,Sri Lanka.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 5, 2209-2218

Abstract: Cutting-edge technology has transformed virtually every area of global operations, prompting individuals to abandon traditional corporate practices in favor of a modern platform. Payment methods have evolved further towards virtual payment ways than ever before, and the global acceptance of cryptocurrencies is astounding. The purpose of this study was to examine the factors that contribute and degree of readiness of SMEs to accept bitcoin as a form of payment, with a special emphasis on SMEs in Sri Lanka. The study used a quantitative survey approach and collected 240 responses from SMEs registered with the Chamber of Commerce and the Ministry of Industry in Sri Lanka. Primary data were collected using a self-administered questionnaire approach, and descriptive and inferential statistics were utilized to evaluate them. The data indicate that respondents were excited about utilizing bitcoins as a payment mechanism. The study revealed that the SME sector in Sri Lanka is breeding ground for new payment technologies, particularly among male-owned SMEs in the service sector. Financial stability plays a greater role as a moderator which enables institutions to continuously enhance and reinvent their services, resulting in a more seamless and intuitive transaction experience. This study further revealed that social influence and trust go hand in hand, and trust has a big impact on the adoption of cryptocurrencies in particular where distrust in SMEs are greater challenge where perceptions of the rule of law is strongest. The findings implied that the transaction openness and more accessible information on the opaque legal issues around cryptocurrencies, particularly the distinct roles of the many regulatory authorities, platform security should be reinforced. Regular security audits, disclosing vulnerabilities and solutions, and responding to users’ complaints and inquiries must all be managed in a well-organized manner among the unorganized sector.

Date: 2025
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