Exploring the Impact of Trust, Confidentiality, And Risk Perceptions on the Intention to Use Cryptocurrency in India

Abstract

Cryptocurrency refers to digital or virtual currencies that operate on cryptographic principles, typically leveraging blockchain technology. As decentralized digital assets, cryptocurrencies are not issued or regulated by central authorities like governments or banks, making them resistant to manipulation or censorship. This study investigates the factors influencing the intention to use cryptocurrency in India, focusing on the roles of trust, confidentiality, and risk perception. Given the growing interest in digital currencies amid regulatory ambiguity, the research adopts a quantitative approach using Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyse responses from 576 participants across Tier 1 Indian cities. The findings reveal that confidentiality and trust significantly impact the intention to adopt cryptocurrency, with risk perception emerging as the most influential determinant. Moreover, risk perception mediates the relationship between trust, confidentiality, and user intention. These results highlight the psychological and contextual challenges surrounding cryptocurrency adoption in India and offer valuable insights for policymakers, technology developers, and financial institutions seeking to foster safer and more inclusive digital financial ecosystems. By mapping the magnitude and direction of each influencing factor, this research illuminates the pathways through which trust and confidentiality, perceived risk, influence cryptocurrency adoption intentions. The practical implications stress the importance of regulatory clarity, privacy safeguards, and user education as strategies to bolster trust, curb risk perception, and facilitate broader cryptocurrency integration into India’s financial landscape.