Examination of Factors that Impact the Intention to Adopt Cryptocurrencies in Tanzania.

Abstract

Cryptocurrency as a digital cashless system has been perceived to accomplish numerous roles including instant international money transfer, making transactions at low charges, online payments, alternative source of currency, and as a speculative business. Moreover, the decentralized and anonymous feature enable it to give freedom and confidentiality of its users. This study aimed to examine factors that impact the intention to adopt cryptocurrencies in Tanzania. The conceptual framework in which hypotheses have been proposed based on Technology Acceptance model (TAM). The study was based on quantitative design approach and data were collected via questionnaire from 368 Dar es Salaam citizens. Findings indicated that the perceived usefulness and the perceived ease of use showed positive association on the intention to use cryptocurrencies. On the contrary, the perceived challenges and risks were insignificant to both the perceived usefulness and the perceived ease of using cryptocurrencies. The study concludes that cryptocurrencies such as Bitcoin can be used in Tanzania to fulfill various roles. Furthermore, the study concludes that security gaps, risks and challenges are among the factors that hinders cryptocurrencies from being used as a legal tender in Tanzania. The study recommends to the government of Tanzania to consider establishing a syllabus on blockchain technology particularly cryptocurrencies in all levels of college and higher education. This will provide a wider understanding of this technology. Also, central bank should review the Tanzania monetary policy in order to accommodate new financial technologies including cryptocurrencies.