Factors Influencing Cryptocurrency Adoption Among Citizens of Selangor

Abstract

Introduction: The rapid growth of financial technology has positioned cryptocurrencies as a promising alternative to traditional financial systems. In Malaysia, particularly in Selangor, however, there is very little adoption of cryptocurrency, as people are fearful of the regulatory concerns, security issues, and public knowledge gap. Given this, it is important to know what motivates the uptake of cryptocurrencies, in order for stakeholders who are looking to promote wider digital financial inclusion to strategize.

Objectives: This study investigates the elements that lead to cryptocurrency adoption among Selangor citizens using the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model. It considers the performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value, habit, perceived risks and cryptocurrency awareness on adoption intentions. In addition, it explores whether cryptocurrency awareness moderates the risk adoption association.

Methods: Quantitative approach was used, where 244 respondents from Selangor were distributed the structured survey. Of these, 213 valid responses were filtered and analyzed using SPSS. Relating variables were assessed by use of statistical techniques such as reliability analysis, normality tests, correlation analysis, multiple regression and moderation analysis.

Results: The results show that performance expectancy, effort expectancy, social influence and habit exert influence on cryptocurrency adoption, and other factors do not exert any influence. The strongest predictor was effort expectancy. Therefore, ease of use is indeed a critical role in the adoption decisions. Interestingly, cryptocurrency awareness was identified not to moderate the association between perceived risk and adoption, indicating that higher awareness does not mitigates the negative effect of perceived risk on adoption.

Conclusions: To sum up, usability, social influence and prior experience drive cryptocurrency adoption in Selangor. This also calls for the need to improve awareness programs on risk concerns and enhancing public confidence. These findings are of great value to policymakers, financial institutions, and cryptocurrency technology developers in their efforts to encourage cryptocurrency adoption in Malaysia.