Cryptocurrency adoption and continuance intention among Indians: moderating role of perceived government control
| DOI | https://doi.org/10.1108/DPRG-09-2022-0108 |
| Published date | 14 March 2023 |
| Date | 14 March 2023 |
| Pages | 288-304 |
| Subject Matter | Information & knowledge management,Information management & governance,Information policy |
| Author | Devkant Kala,Dhani Shanker Chaubey |
Cryptocurrency adoption and continuance
intention among Indians: moderating role
of perceived government control
Devkant Kala and Dhani Shanker Chaubey
Abstract
Purpose –This study aims to investigate the influence of perceived government control (PGC) on
cryptocurrency adoption and continuance intention among Indians through an integrated model of the
extended Unified Theory of Acceptance and Use of Technology (UTAUT) with the Information System
SuccessModel (ISSM).
Design/methodology/approach –This study examined the items of cryptocurrency adoption,
continuanceintention and PGC adopted from the informationsystems and cryptocurrency literature.The
survey was administeredto 391 Indians through an online questionnaire.Partial least squares structural
equationmodeling was used to analyze data.
Findings –Results haveshown that social influence, effort expectancyand perceived trust are the major
drivers for cryptocurrency adoption. All paths leading to cryptocurrency adoption were found to be
significant in the hypothesized directions. The study also found that PGC moderates the relationship
betweenadoption and continuance intention.
Originality/value –This study advancesexisting literature by empirically verifyingthe integrated UTAUT
and ISSM in the context of cryptocurrencyadoption for investment purposes. The findings offer crypto-
developersand crypto-exchange insight intohow adoption is diffusing in emergingmarkets. The findings
provide policymakerswith meaningful insights into the role of government regulationsin cryptocurrency
continuanceintention.
Keywords Cryptocurrency, Continuance intention, Perceived government control, India
Paper type Research paper
Introduction
Cryptocurrency has emerged as an important technology-enabled digital currency
facilitating consumers’ requirements for flexible, convenient and time-efficient payment
systems (Huang, 2019;Salcedo and Gupta, 2021). Cryptocurrencies, which are seen as
cutting-edge Fintech technologies, have grown quickly (Liu et al., 2022), disrupted financial
markets and altered how the global economy functions (Albayati et al., 2020;Dabbous
et al.,2022
). However, the reactions towards cryptocurrency are generally mixed in
nature ranging from the great invention to security concerns (Huang, 2019;Mendoza-Tello
et al.,2019
). CoinMarketCap.com, a cryptocurrency-tracking website, listed 21,688
cryptocurrencies as of October 2022. In terms of total market capitalization (as of October
2022), Bitcoin is the most valuable cryptocurrency ($398bn). Ethereum is the second most
popular cryptocurrency ($191bn). According to blockchain data platform Chainalysis,
global cryptocurrency adoption has increased by over 2,300% since the third quarter of
2019 and by over 881% in the previous year. In March 2020, after the Supreme Court
overturned the Reserve Bank of India’s ban on cryptocurrencies, young Indian
customers are flocking the crypto-selling platforms in the country. According to Global
Crypto Adoption Index 2021 by blockchain data platform Chainalysis,India ranks second in
Devkant Kala is based at the
School of Business, University
of Petroleum and Energy
Studies, Dehradun, India.
Dhani Shanker Chaubey is
based at the Department of
Management, Uttaranchal
University, Dehradun, India.
Received 7 November 2022
Revised 14 January 2023
6 February 2023
12 February 2023
Accepted 12 February 2023
PAGE 288 jDIGITAL POLICY, REGULATION AND GOVERNANCE jVOL. 25 NO. 3 2023, pp. 288-304, ©Emerald Publishing Limited, ISSN 2398-5038 DOI 10.1108/DPRG-09-2022-0108
global cryptocurrency adoption (Chainalysis, 2021). As per reports of various Indian
financial research firms, since April 2020, Indians’ investment in cryptocurrencies has
increased to over $10bn from $923m (Economic Times, 2021). In addition, the presence of
crypto-exchange platforms in India has also facilitated trading in cryptocurrencies. Rapid
price growth and excellent profits have motivated Indians to invest in cryptocurrencies as
an investable asset.
Although cryptocurrencies offer an innovative solution to overcome the problems of
traditional methods of electronic financial transactions, they have their own set of security
issues and complications. Many scholars have examined the discouraging aspects of
cryptocurrencies such as perceived risk and security concerns (Baur et al.,2018;
Mazambani and Mutambara, 2020;Dabbous et al.,2022;Schaupp et al.,2022), lack of
trust (Shahzad et al., 2018;Albayati et al.,2020;Arli et al.,2021;Ayedh et al.,2021;
Ooi et al.,2021;Palos-Sanchez et al.,2021) and government restrictions on cryptocurrency
acceptance (Shahzad et al., 2018;Albayati et al., 2020;Dabbous et al.,2022). Given such
a potentially complex scenario, why do consumers make the intention to adopt
cryptocurrencies? Also, access to cryptocurrencies is getting easier in India through
app-based mobile platforms. With the growing popularity of and easy access to
cryptocurrencies, it is important to understand what drives Indians to invest in
cryptocurrencies.Even though cryptocurrencies appearto be a viable option for investment,
standardized governing regulation for cryptocurrency remains elusive globally. As
cryptocurrencies exist at the nexus of technology, economics and policy, it is necessary to
use an interdisciplinary approach to analyzing their risks and applications (Dabbous et al.,
2022). Surprisingly, despite the lack of robust government regulations, Indians are investing
in cryptocurrencies fearlessly, motivating researchers to investigate the continuance
intention behavior of Indians. Additionally, the present study also expands the future
research directions of Shahzad et al. (2018),Arli et al. (2021) and Ooi et al. (2021),which
have suggested examining cryptocurrencies’ acceptance in emerging markets and the
role of government regulations in the behavior of investors. Given the paucity of research
on Indians’ adoption of and the Indian Government’s current stance on cryptocurrency, it
seems that there isa gap between the real world and the academicarena.
Furthermore, scholars argue that consumer adoption and continuance intention are
influenced by different factors. Humbani and Wiese (2019) and Lee and Kim (2020),who
observed that consumers’ perspectives change after a technology experience, validated
this argument. The adoption of new services is essential for their dissemination, and
continuance determines long-term viability and ultimate success (Bhattacherjee, 2001). As
adoption can be considered as the first stagetoward continuous usage, it is suggested that
the two phenomena be investigatedjointly. The studies of Sun and Jeyaraj (2013),Humbani
and Wiese (2019),Lee and Kim (2020) and Liu et al. (2023) support this argument.
However, in the context of cryptocurrency,researchers focused primarily on adoption, while
continuation intention received little attention. To provide a more holistic approach, this
study explores both the adoption and the continuance intention of cryptocurrencies
simultaneously in one study and from the perspective of an emerging economy, which
researchers believe has not been examined.
Therefore, the present study aims at examining Indians’ cryptocurrency adoption and
continuance intention by applyingthe Unified Theory of Acceptance and Use of Technology
(UTAUT) and Information System Success Model (ISSM), combining additional constructs
and the perceived government control (PGC). Theoretical framework integrating UTAUT
and ISSM can improve understanding of the factors that influence adoption and
continuance intention.The main objectives of the study are to:
䊏examine drivers of cryptocurrency adoption in India;
䊏investigate the continuance intention of cryptocurrency adoption; and
VOL. 25 NO. 3 2023 jDIGITAL POLICY, REGULATION AND GOVERNANCE jPAGE 289
To continue reading
Request your trial