The Role of Cryptocurrencies in Emerging Markets: Investigating the Growing Adoption of Cryptocurrencies in Developing Countries, Their Potential to Improve Financial Inclusion and Economic Empowerment

Abstract

The present study discusses how adopting cryptos affects financial inclusion in developing economies. Primary constructs like Financial Inclusion (FI), Perceived Economic Empowerment (PEE), Trust in Financial Institutions (TFI), User Satisfaction (US), and Cryptocurrency Adoption (CA) were tested through Structural Equation Modeling (SEM). The results indicated that CA significantly and positively influenced FI, US, TFI, and PEE. These relationships extend to the interaction effects: US, TFI, and PEE all positively related to FI. It is a reflection of cryptocurrencies as an opportunity to redress most of the afflictions characteristic of traditional finance systems and to promote financial inclusion and economic empowerment in developing countries. Future research should also investigate whether digital literacy and regulatory environments support cryptocurrency access.