Factors Influencing the Acceptance of Blockchain Technology and Cryptocurrency for Financial Transactions among Millennials in Malaysia

Abstract

This study addresses the growing importance of promoting blockchain technology and cryptocurrency adoption within the financial sector, particularly among Malaysian millennials. Despite its significance, there is limited research on millennials' acceptance of blockchain-based financial transactions in Malaysia. This study aims to bridge this gap by exploring critical behavioural factors that impact cryptocurrency usage within this demographic. To gather insights, a survey was conducted among Malaysian millennials, resulting in 110 fully completed questionnaires, which were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM 4.0). The findings reveal four primary drivers influencing millennials’ adoption of blockchain-based applications: security and control, transaction processing, perceived usefulness, and attitude. Notably, attitude emerged as the most influential factor, explaining 71.6 percent of the variance in cryptocurrency acceptance. These results underscore the complex interplay of factors that shape millennials' acceptance of blockchain technology and cryptocurrency in financial transactions. Consequently, identifying these acceptance factors is crucial for industry players seeking to understand and cater to millennials’ preferences in digital finance. To support these insights, this study proposes an innovative model that integrates the Technology Acceptance Model (TAM) with specific external variables related to blockchain technology characteristics, such as security control and transaction processing, providing a comprehensive framework for future research and industry applications.