Factors Influencing the Adoption of Cryptocurrencies among Individuals in Tanzania Evidences from Cryptocurrencies International Tanzania Ltd (Citl)

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.