Abstract:
Cryptocurrency is one of the evidences regarding the advancement of communication
Technology and in the finance sector. It is considered to be a digital currency for the
current and future generation. While the operations of cryptocurrency have varied from
a place to the other, in Tanzania, the legal status of cryptocurrency has not been clear.
Despite this situation, a number of companies and individual people mine and trade
cryptocurrency. This study assessed factors influencing the adoption of cryptocurrency
among individuals in Tanzania. The study was based on three objectives which were
to; (i) examine the influence of user’s perception on the adoption of cryptocurrency in
Tanzania; (ii) determine the effect of technology-based factors on the adoption of
cryptocurrency in Tanzania; and (iii) determine the influence of facilitating conditions
on the adoption of cryptocurrency as a digital trading currency in Tanzania. The study
used the TAM model, the updated UTAUT model and the Diffusion of Innovation
theory. The researcher used a mixed methods research approach with the convergent
design with a sample of 62 respondents. Data collected were analysed through
descriptive and inferential technique for quantitative data and content analysis for
qualitative data. Findings revealed that an individual person’s perception in terms of
perceived ease of use, perceived usefulness and perceived risks influenced the
adoption of cryptocurrency. Moreover, technology-based factors and facilitating
conditions also have a direct and positive effect of the adoption of cryptocurrency
adoption in Tanzania. Based on such findings, it is concluded that cryptocurrency is
here to stay easy to use and an income opportunity to traders and thus its legality is of
pivotal importance. The study recommends the central bank of Tanzania to legalize
the digital currency and allow the country to connect to the global finance. Moreover,
the study recommends Higher learning institutions to integrate cryptocurrency in their
curricula as a means of connecting the young with contemporary global economic
issues.
