DETERMINANTS OF CRYPTOCURRENCY ADOPTION: EVIDENCE FROM AN EMERGING ECONOMY

Purpose- Cryptocurrency adoption has tremendously improved in Sub-Saharan Africa's emerging economies. Despite this trend, less emphasis has been placed on determinants of cryptocurrency adoption in such economies. This study extended the Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), and Technology Acceptance Model (TAM), to examine aspects that determine cryptocurrency adoption in Kenya. The study findings may assist policymakers in developing a sturdy regulatory framework for adopting digital assets and monitoring Virtual Asset Service Providers (VASPs). Methodology- Data was collected through questionnaires from 400 students, graduates, and investors who had information about cryptocurrency. The study employed a structural equation model to estimate our latent constructs. Findings- Results confirmed the hypotheses that perceived utility, perceived ease of usage, perceived risk, attitude, and subjective norms are significant constructs in determining behavioral intent to use cryptocurrency in Kenya. Further, the mediatory role of attitude on cryptocurrency adoption was also confirmed. Conclusion- Policies that promote the introduction of an e-cash platform, regulation of digital system currencies, social mass awareness, and cryptocurrency companies with good reputations should be introduced by the government to ensure the development of the cryptocurrency market in Kenya. Keywords: Cryptocurrency, perceived risk, perceived utility, perceived usability, subjective norm JEL Codes: G15, O30, E32