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

Amal Dabbous, May Merhej Sayegh and Karine Aoun Barakat

Journal of Risk Finance, 2022, vol. 23, issue 4, 349-367

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.

Keywords: Cryptocurrencies; Risk; Social influence; Regulatory support; Technology awareness (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jrfpps:jrf-10-2021-0169

DOI: 10.1108/JRF-10-2021-0169

Access Statistics for this article

Journal of Risk Finance is currently edited by Nawazish Mirza

More articles in Journal of Risk Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().