The Impact of Government Support Factor on The Use of Cryptocurrency

Abstract

Cryptocurrency is a topical and growing concept in Indonesia; however, there needs to be more literature on the effects of government policies on it. Consequently, this quantitative study seeks to fill this research gap by establishing the extent of the intention to use cryptocurrency among Indonesian investors and future investors. Cryptocurrency in the form of investment is legally accepted even though it is not legally regarded as a medium of exchange. The research evaluates the effect of government support on the adoption rates while concluding that the theory postulates four factors: product literacy (PL), social influence (SI), perceived benefit (PB), and trust (T). The surveys were distributed to 596 participants; however, 83 values were removed, leaving 513 valid responses. The results demonstrate that government support strongly improves the level of product literacy, social pressure, perceived benefit, and trust related to the use of cryptocurrencies, which, in turn, positively affects the intention to use cryptocurrency. From this, it can be deduced that the government's involvement plays a critical role in influencing perception and building confidence in the use of cryptocurrency for investment. The findings of this paper should prove useful to policymakers and industry stakeholders who seek to foster the sustainable development of cryptocurrencies in Indonesia. Increasing the quality of the given legislation and raising the population's awareness can contribute to the development of cryptocurrencies in the country.