A Study on Factors that Lead to Adoption of Cryptocurrency in Malaysia

Abstract

Cryptocurrency is a type of digital currency that is secured through cryptography which is the practice of writing or solving codes to ensure security. It operates on a decentralized blockchain technology. Adopting cryptocurrency may help people in facing inflation, recession and economic problems. However, in Malaysia, the adoption of cryptocurrency is relatively low (3.03% of population) compared to other countries such as Vietnam (20.54% of population), UAE (27.67% of population) and Singapore (14% of population). Therefore, this study was constructed to investigate the factors that contribute significantly to the adoption of cryptocurrency in Malaysia and to obtain the best logistic model in adopting cryptocurrency. Logistic regression and stepwise analysis were handled with independent variable age, gender, location of living, awareness of cryptocurrency, monthly income and attitude towards cryptocurrency. This study was carried out on people who live in Malaysia. The result of this study was revealed that variable gender, awareness of cryptocurrency, monthly income and attitude towards cryptocurrency contribute significantly to the adoption of cryptocurrency in Malaysia.