Abstract
Cryptocurrency could redefine the interplay of Internet-connected world markets by eliminating constraints set by traditional local currencies and exchange rates. It has the potential to revolutionise digital markets through the use of duty-free trading. This study investigates the factors which influence the behavioural intention to use cryptocurrency based on the Technology Acceptance Model 3 (TAM 3) during the COVID-19 (SARS-COV-2) pandemic. Data were collected through a cross-sectional questionnaire from 357 Pakistani business-educated adults, including investors who had a rudimentary understanding of the technology and financial instruments. Partial least square (PLS)-based structural equation modeling (SEM) was used to test the developed theoretical framework based on the Technology acceptance model 3. The PLS model has explained 72.1% of what constitutes the behavioural intention to use cryptocurrency. Surprisingly, risk was not a major consideration. This might be due to the fact that the majority of respondents thought working with cryptocurrency was hazardous. Willingness to handle cryptocurrency risk, on the other hand, might be a stumbling block to acceptance. The most essential aspect of a cryptocurrency's success was the perceived usefulness. Moreover, the moderating role of experience was not substantiated in this study. However, perceived usefulness was identified as a partial mediator of subjective norm and the perceived ease to use. This study contributed to the literature through the application of TAM 3 (an extension of the technology acceptance models) to investigate the fundamental qualities a cryptocurrency should have in order to influence investor's behavioural intention to use it. These findings provide revolutionary insights for the present and future market players for investment planning and for improved cryptocurrencies development.
Highlights
With a global transaction value of US$5,204 billion in 2020, the Digital Payments sector is the largest within FinTech
CR values were higher than the suggested 0.7 (Hair et al, 2006) in addition, the value of AVE, which quantifies the degree of variance in the indicators explained for by the latent construct, for all the variables investigated in this study met or exceeded the minimum suggested cutoff value, indicating that convergent validity was achieved
Cryptocurrency can be viewed as a viable alternative to conventional financial services, as it can be used for both transactional and speculative purpose and is aimed to be used by a wide range of people, from aspiring entrepreneurs to investors
Summary
With a global transaction value of US$5,204 billion in 2020, the Digital Payments sector is the largest within FinTech. The numbers of cryptocurrencies quoted in the market as purchased and sold are not definite, as nowadays, any organisation or business can generate and use its own cryptocurrency as an initial coin offering (ICO) for raising funds by using blockchain technology (Burns and Moro, 2018). A study by International Netherlands Group (ING) International Survey Mobile Banking found that, in bitcoin, 29% of European investors perceive cryptocurrencies as risky investment (Exton and Doidge, 2018) It has greater risk and price instability as compared to conventional or fiat currency. Cryptocurrencies have potential and opportunities for growth in the emerging economies, with respect to collaborative, noticeable, effective, speedy, confidential, and safe transactions, but it poses difficulty in using and in adaptability due to less knowledge on technological and financial activities. Business-educated adults are current and potential investors of financial instruments, most likely of cryptocurrency
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