Factors Influencing Cryptocurrency Adoption: A Study of University Students, Professionals, and Investors in Sri Lanka

Abstract

This study aims to understand the beliefs and perceptions on the usage of cryptocurrency in the context of Sri Lanka. At the outset of the growing global demand for digital currencies and the limited number of cryptocurrency users in Sri Lanka, the research attempts to identify the factors that influence individuals' intention to use cryptocurrency in the country. The study collected primary data from a sample of 311 participants, including university students, professionals, and investors in Sri Lanka, and employed Structural Equation Modelling (SEM) to accomplish the objectives of the study. The results reveal that perceived benefits, perceived value, structural provisions, and attitudes toward using cryptocurrency significantly influence individuals' behavioral intention to adopt cryptocurrency. However, the hypotheses related to perceived risks, social effects, the moderating effect of self-efficacy, and personal inventiveness are found to be statistically insignificant. Thus, the tested model and its results provide insights for improving cryptocurrency adoption and usage in Sri Lanka, offering guidance for businesses and policymakers in promoting and facilitating the use of digital currencies among the population