The role of interpersonal trust in cryptocurrency adoption

Jalan, Akanksha, Matkovskyy, Roman, Urquhart, Andrew and Yarovaya, Larisa (2023) The role of interpersonal trust in cryptocurrency adoption. Journal of International Financial Markets, Institutions and Money, 83 (3), [101715]. (doi:10.1016/j.intfin.2022.101715).

Record type: Article

Abstract

Despite the impressive adoption of cryptocurrencies since Bitcoin was introduced in 2008, little academic attention has been paid to the role of interpersonal trust in fostering this adoption. In this paper, we quantify the effect of interpersonal trust on the interest in and adoption of the three largest cryptocurrencies by market capitalization – Bitcoin, Ethereum and Litecoin using data from the 7th wave of the World Values Survey, Twitter, and Google Trends. Our results indicate a positive and statistically significant effect of trust on interest in and adoption of cryptocurrencies, confirming the importance of trust in the growth of financial markets.

Text

manuscript_final_R3 (1) - Accepted Manuscript

Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (144kB)

More information

Accepted/In Press date: 16 December 2022

e-pub ahead of print date: 26 December 2022

Published date: 1 March 2023

Additional Information: Funding Information: We are grateful to the editor (Professor Jonathan Batten) and the anonymous referees for the thoughtful and constructive comments on the paper. Also, the authors would like to thank the participants at the Cryptocurrency Research Conference 2022 in Durham, UK; and the participants of the 1st Conference on International Finance, Sustainable and Climate Finance and Growth 2022 in Naples, Italy. Roman Matkovskyy and Akanksha Jalan acknowledge support from the European Union’s Horizon 2020 COST Action “FinAI: Fintech and Artificial Intelligence in Finance – Towards a transparent financial industry” (CA19130). Roman Matkovskyy and Akanksha Jalan also acknowledge support from the “Financial Market and Corporate Outcomes ” research centre, Rennes School of Business. Funding Information: We are grateful to the editor (Professor Jonathan Batten) and the anonymous referees for the thoughtful and constructive comments on the paper. Also, the authors would like to thank the participants at the Cryptocurrency Research Conference 2022 in Durham, UK; and the participants of the 1st Conference on International Finance, Sustainable and Climate Finance and Growth 2022 in Naples, Italy. Roman Matkovskyy and Akanksha Jalan acknowledge support from the European Union's Horizon 2020 COST Action “FinAI: Fintech and Artificial Intelligence in Finance – Towards a transparent financial industry” (CA19130). Roman Matkovskyy and Akanksha Jalan also acknowledge support from the “Financial Market and Corporate Outcomes ” research centre, Rennes School of Business. Publisher Copyright: © 2022 Elsevier B.V.

Keywords: cryptocurrency, cryptocurrency adoption, ethical investment, societal trust, Cryptocurrency adoption, Cryptocurrency, Ethical investment, Societal trust