EXAMINATION OF FACTORS INFLUENCING THE INTENTION TO ADOPT CRYPTOCURRENCIES IN TANZANIA

Cryptocurrencies, Tanzania, Blockchain technology, Bitcoin

Abstract

This paper examined factors influencing the intention to adopt cryptocurrencies in Tanzania. Specific objectives were
to assess the roles of cryptocurrencies in Tanzania, to evaluate the risks of adopting cryptocurrencies to the existing
financial and banking ecosystem and to examine the challenges of using cryptocurrencies in Tanzania. The study was
carried out in Dar es salaam city. Purposive and snowball sampling technique were used to reach 368 respondents. The
study employed quantitative method. Data were collected by using structural questionnaires and analyzed by employing
regressions and correlation testing. Technology Acceptance Model (TAM) was used to formulate conceptual framework
and hypotheses. The findings indicated that the perceived usefulness and the perceived ease of use showed positive
association on the intention to use cryptocurrencies. The ease and usefulness of cryptocurrencies was found in fulfilling
various roles including making instant international money transfer, transacting at low charges, using it as an
alternative source of currency, making free anonymous transaction and paying for the online services that accept
cryptocurrencies. On contrary, the perceived challenges and risks were insignificance 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, risks and challenges are the key factors
that delays cryptocurrencies from being used as a legal tender in many countries including Tanzania. The study
recommends to the government of Tanzania to consider establishing a cryptocurrency based in Tanzania. Also, the
syllabus on blockchain technology particularly cryptocurrencies should be established in both school and higher
education. Finally, the study recommends central bank to review the Tanzania monetary policy in order to accommodate
this financial technology