Use and acceptance of crypto currencies in India: an evaluation of block chain application in financial sector using PLS SEM and ANN approach

Abstract

PurposeThis paper aims to create and evaluate a model for cryptocurrency adoption by investigating how age, education, and gender impact Behavioural Intention. A hybrid approach that combined partial least squares structural equation modeling (PLS-SEM) and artificial neural network (ANN) was used for the purpose.Design/methodology/approachThis study uses a multi-analytical hybrid approach, combining PLS-SEM and ANN to illustrate the impact of various identified variables on behavioral intention toward using cryptocurrency. Multi-group analysis (MGA) is applied to determine whether different data groups of age, gender and education have significant differences in the parameter estimates that are specific to each group.FindingsThe findings indicate that Social Influence (SI) has the greatest impact on Behavioral Intention (BI), which suggests that the viewpoints and recommendations of influential and well-known individuals can serve as a motivating factor to invest in cryptocurrencies. Furthermore, education was found to be a moderating factor in the relationship found between behavioral intention and design.Research limitations/implicationsPrior studies on technology adoption have utilized superficial SEM and ANN methods, whereas a more effective outcome has been suggested by implementing a dual-stage PLS-SEM and ANN approach utilizing a deep neural network architecture. This methodology can enhance the accuracy of nonlinear connections in the model and augment the deep learning capacity.Practical implicationsThe research is based on the Unified Theory of Acceptance and Use of Technology (UTAUT2) and expands upon this model by integrating elements of design and trust. This is an important addition, as design can influence individuals' willingness to try new technologies, while trust is a critical factor in determining whether individuals will adopt and use new technology.Social implicationsCryptocurrencies are a relatively new phenomenon in India, and their use and adoption have grown significantly in recent years. However, this development has not been without controversy, as the implications of cryptocurrencies for society, the economy and governance remain uncertain. The results reveal that social influence is an important predictor for the adoption of cryptocurrency in India, and this can help financial institutions and regulators in making policy decisions accordingly.Originality/valueGiven the emerging nature of cryptocurrency adoption in India, there is certainly a need for further empirical research in this area. The current study aims to address this research gap and achieve the following objectives: (a) to determine if a dual-stage PLS-SEM and ANN analysis utilizing deep learning techniques can yield more comprehensive research findings than a PLS-SEM approach and (b) to identify variables that can forecast the intention to adopt cryptocurrency.

Financial Behaviour, Financial Self Efficacy and Intention to Invest in Cryptocurrency

“…Before we define investing intention, we'll define "behavioural intention" as an explicit precursor of behaviour (Ajzen, 2002). Intention is a representation of an individual's readiness to engage in a specific activity (Mishra et al, 2023). If all of the prerequisites of intention, specifically attitude, subjective norm, and perceived behavioural control, are good, an individual is more likely to undertake a certain behaviour.…”

“…A person who has a personality trait that is attracted to innovation and technology may be more inclined to take risks in investing in cryptocurrencies, which are assets that are closely related to blockchain technology and innovation in the financial world. Another reason is openness to experience (Mishra et al, 2023). Individuals who are more open to new experiences tend to be more willing to try new things, including investing in digital assets such as cryptocurrencies.…”