Antecedents to Consumer Adoption of Cryptocurrencies and Non-Fungible Tokens in South Africa

Abstract

The growing global fascination with cryptocurrencies and Non-Fungible Tokens (NFTs) offers prospects such as financial inclusion for underserved populations, diversification of investment portfolios, and innovation in digital ownership and monetization, but presents obstacles including socio-economic inequalities, technological complexity, and regulatory ambiguity for consumer uptake. In South Africa, the uptake of these digital assets is still relatively scarce owing to these multifaceted barriers. This investigation explores the components that affect consumer approval of cryptocurrencies and NFTs within South Africa, emphasizing vital aspects such as awareness, comprehension, tech readiness, trust levels, perceived value, and the presence of supportive infrastructure. By synthesizing the Theory of Planned Behaviour (TPB), Technology-Readiness Index (TRI), and the Unified Theory of Acceptance and Use of Technology (UTAUT), this investigation crafts a framework to analyze the impact of these aspects on consumer adoption intentions. The research employs a quantitative methodology, leveraging survey responses from South African consumers to evaluate their views and readiness to participate in cryptocurrencies and NFTs. The study uses Structural Equation Modelling (SEM) to analyze the relationships among essential factors such as perceived trust, performance expectancy, effort expectancy, and social influence. The results indicate that both awareness and technological readiness play a significant role in influencing adoption intentions, while issues related to security, regulatory ambiguity, and technological complexity present obstacles. Additionally, perceived value for price and hedonic motivation are pivotal in influencing consumer choices concerning cryptocurrencies and NFTs as investment options. This study contributes to the ongoing academic discussion by addressing gaps in existing research on the adoption of digital assets in emerging markets. From a practical standpoint, it offers actionable insights for policymakers, marketers, and financial institutions to develop targeted strategies that encourage greater adoption. The findings emphasize the role of educational initiatives, transparent regulatory frameworks, and intuitive technological solutions in fostering trust and enhancing accessibility. Further research could explore long-term patterns and the impact of broader economic factors on adoption trends.