Cryptocurrency Adoption in Malaysia


Sukumaran, Shangeetha and Thai, Siew Bee and Wasiuzzaman, Shaista (2022) Cryptocurrency Adoption in Malaysia. In: Postgraduate Social Science Colloquium 2022, 1 - 2 June 2022, Online.

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Background - Many nations have already integrated cryptocurrency technology into their financial systems. Nonetheless, Malaysia is still in its infancy and early stages. Purpose - The objective of this study is to identify the factors that motivate Malaysian retail investors to invest in cryptocurrencies as an investment. Design/methodology/approach - This study uses a quantitative approach, and a survey questionnaire was developed. Structural Equation Modelling method were used and analyzed using Smart PLS-SEM. The dependent variable is the “adoption”. This study uses a quantitative approach, and a survey questionnaire was developed. The structural equation modelling method was used and analyzed using Smart PLS-SEM. The dependent variable is "adoption". Independent variables were represented (compatibility, relative advantage, complexity, observability, trialability, perceived risk, and perceived value). In addition, the demographics of the respondents were examined using the chi-square test of independent variables. Respondent-driven sampling was used to get responses from 314 people in cities all over Malaysia. Findings/Expected Contributions - The findings of the study indicate five out of seven factors were identified as supporting the hypothesis and were found significant. (Compatibility, trialability, complexity, observability, and perceived value). Meanwhile, relative advantage and perceived risk were found to be insignificant. Besides that, demographic variables were represented as control variables. Only gender was found to be significant, whereas age, income, and education were found to be insignificant towards cryptocurrency adoption. Research limitations - This study is limited by the fact that just seven factors were analysed to understand the adoption of cryptocurrencies in Malaysia. Besides that, this study only focuses on the Malaysian context. Originality/value - This is one of the few of research that combines two theories to explain the adoption of cryptocurrencies. This study applied two theories: the diffusion of innovation theory where all five diffusion factors are considered. Next, consumer behaviour theory includes examining retail investors' perceptions of cryptocurrencies, including "perception of risk" and "perception of value." This approach by integrating two theories gives a new insight on the adoption of cryptocurrency investment by retail investors in the Malaysian context.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: adoption, Investment, cryptocurrency, demographic
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 15 Aug 2022 02:24
Last Modified: 15 Aug 2022 02:24


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