A FRAMEWORK FOR BEHAVIOURAL INTENTIONS TO ADOPT CRYPTOCURRENCY AMONG PUBLIC UNIVERSITY STUDENTS IN THE KINGDOM OF SAUDI ARABIA

Abstract

Many individuals believe that the cryptocurrencies have the potential to disrupt the traditional financial system. This is evidenced in several commercial and scholarly studies that show a significant investment made by individuals in different cryptocurrencies like Bitcoin and Ethereum despite the associated risks such as volatility in value and a lack of regulations. Although, cryptocurrency is a rapidly growing digital asset and its investment potential remain uncertain. Both pros and cons of cryptocurrencies can cause problems for individuals. Therefore, it is essential to understand individuals’ intention toward cryptocurrency to prevent them from any financial loss or for the authorities to make informed decision in policymaking, strategies for adoption of cryptocurrency. By examining individual intentions, this study seeks to provide valuable insights into the behavioural drivers and barriers affecting cryptocurrency adoption. The study used a quantitative research method with developing a survey questionnaire. Using a purposive sampling technique, the study targeted the students in the Saudi Arabian universities. The study used SPSS software for demographic and descriptive statistics and Smart PLS for testing validity, reliability and research hypotheses. To achieve this, past research studies have identified several factors that influence behavioural intentions of individuals to adopt cryptocurrency. However, those studies are conducted either in a specific context e.g., country or are conceptual. Despite progress in understanding cryptocurrency adoption, financial literacy and technology readiness's moderating roles in culturally unique contexts like Saudi Arabia still needs to be explored. Studies have focused on direct factors like awareness, effort expectancy, and security without adequately exploring how individual capabilities and preparedness affect these relationships. By studying the relationship between financial literacy, technology readiness, and cryptocurrency adoption, this study seeks to fill these gaps and better understand Saudi Arabian user intentions. To fill this gap, this study aims to understand the factors influencing behavioural intentions of public university students to adopt cryptocurrencies in the Saudi Arabia. Public university students are chosen as the population for this study because they represent the youth in Saudi Arabia who are early adopters of innovation like cryptocurrency. The study uses an extended version of the existing Unified Theory for Acceptance and Use of Technology (UTAUT) as a foundational theory. The results of the study show that awareness, performance expectancy, effort expectancy, social influence, and security significantly influence the behavioural intentions of public university students to adopt cryptocurrency in Saudi Arabia. The results also show that the technology readiness and financial literacy moderate the relationship of influencing factors and behavioural intention. The study contributes theoretically and practically into the existing body of knowledge. The study not only replicates the findings of the past studies on individuals’ intention to adopt cryptocurrency, but it also extends and confirms the UTAUT model in the context of Saudi Arabia. The results of the study would benefit the policy makers, practitioners, regulators, and government authorities in developing better policies, and strategies for the adoption of cryptocurrency in Saudi Arabia.