Determinants of Cryptocurrency Adoption in Tanzania’s Banking Sector

Abstract

Cryptocurrency is conceptualized as digital assets designed to function as mediums of exchange in Todays’ world. The objective of the study was to; evaluate the technological infrastructures and perception of Tanzanian consumers, as determinants to the adoption of cryptocurrencies in Tanzania’s commercial banks. The study employed a quantitative research design using surveys administered to 350 selected bank staff from ten commercial banks in Dar es Salaam and Dodoma. Data were collected through structured questionnaires and analyzed using descriptive and inferential statistical techniques. The findings indicate that both consumer perception and technological infrastructure significantly influence cryptocurrency adoption in Tanzania's commercial banks, with consumer perception having a more dominant impact. The study concludes that although banks possess strong infrastructure readiness, increasing public awareness and understanding is crucial to promoting wider adoption of cryptocurrency. Commercial banks are advised to invest in advanced and secure technological infrastructures to support the growing adoption and safe integration of cryptocurrencies. Future studies can adopt a mixed research approach, incorporating qualitative methods to gain deeper insights into the factors determining the adoption of cryptocurrencies in Tanzania's commercial banking sector.