Assessment of readiness of cryptocurrencies usage in Tanzania using Extended Unified Theory of Acceptance and Use of Technology

Abstract

Cryptocurrencies are decentralized currencies based on blockchain technology which allows recording and transactions without the need of a trusted third party. Blockchains are distributed ledgers that are managed and maintained over a peer-to-peer network relying on cryptography, hash functions, time-stamped logs, and consensus protocols. Bitcoin was the first cryptocurrency that came into existence in 2008, today there are over nine thousand cryptocurrencies in the crypto market. Despite the large number of cryptocurrencies, the user penetration rate is only at 11% all over the world and only at 1.26% in Tanzania. The purpose of this study was to investigate the readiness for the usage of cryptocurrencies in Tanzania using the Extended version of the Unified Theory of Acceptance and Use of Technology. Data was collected using a questionnaire, purposive sampling, and snowballing technique was employed in data collection. The descriptive and inferential statistics of percentage mean were used to answer the research questions. The results show readiness for cryptocurrency usage is affected by facilitation conditions, in the government does not regulate individuals perceive that there is insufficient infrastructure to support cryptocurrency usage, cryptocurrency is not safe to use because the government does not regulate it, the concerns of data breaches and lack of reliable support by cryptocurrency platforms. Performance expectancy, social influence, and hedonic factors positively influence the readiness for cryptocurrency usage. Also, the results show that a large Tanzania population is unaware of cryptocurrency. The study recommends that the government should come up with policies and frameworks that will help regulate cryptocurrency usage and tax collection, thus enabling Tanzanians to benefit from cryptocurrencies and blockchain technology opportunities.