Skip to main content
SpringerLink
Log in

The Influence of Privacy Concerns on Cryptocurrency Acceptance

  • Conference paper
  • First Online:
ICT Systems Security and Privacy Protection (SEC 2023)

Part of the book series: IFIP Advances in Information and Communication Technology ((IFIPAICT,volume 679))

  • 17 Accesses

Abstract

Despite the hype, cryptocurrencies have to far failed to establish themselves as a means of payment for everyday transactions, spawning a wealth of research into acceptance factors and obstacles for cryptocurrency adoption. Our paper adds to this literature by investigating the role of organizational privacy concerns and risk perceptions on cryptocurrency acceptance. Employing a representative survey of German e-commerce users with 257 respondents we find that while risk perceptions and concerns about data collection do affect adoption willingness for cryptocurrencies, neither are useful for predicting actual adoption behavior. This is especially notable since the lack of central counterparties that may steal funds or personal data was one of the original motivations for the creation of the first cryptocurrencies. Our results provide insight into the nature of cryptocurrency adoption and highlights a discrepancy between intention and behavior.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Yes; No, but I have considered it before; No, I haven’t considered it yet either.

  2. 2.

    seven-point Likert scale from “strongly disagree” (1) to “strongly agree” (7).

References

  1. Abramova, S., Böhme, R.: Perceived benefit and risk as multidimensional determinants of bitcoin use: a quantitative exploratory study. In: ICIS 2016 Proceedings (2016)

    Google Scholar 

  2. Arias-Oliva, M., Pelegrín-Borondo, J., Matías-Clavero, G.: Variables influencing cryptocurrency use: a technology acceptance model in Spain. Front. Psychol. 10, 475 (2019)

    Article  Google Scholar 

  3. Arli, D., van Esch, P., Bakpayev, M., Laurence, A.: Do consumers really trust cryptocurrencies? MIP 39(1), 74–90 (2021)

    Article  Google Scholar 

  4. Bech, M.L., Garratt, R.: Central bank cryptocurrencies. BIS Q. Rev. (2017)

    Google Scholar 

  5. Berentsen, A., Schär, F.: The case for central bank electronic money and the non-case for central bank cryptocurrencies. Federal Reserve Bank of St. Louis Review, Second Quarter 2018, pp. 97–106 (2018)

    Google Scholar 

  6. Brandeis, L., Warren, S.: The right to privacy. Harv. Law Rev. 4(5), 193–220 (1890)

    Article  Google Scholar 

  7. Chen, L.: A model of consumer acceptance of mobile payment. Int. J. Mob. Commun. 6(1), 32–52 (2008)

    Article  Google Scholar 

  8. Chen, L.D., Tan, J.: Technology adaptation in e-commerce: key determinants of virtual stores acceptance. EMJ 22(1), 74–86 (2004)

    Google Scholar 

  9. Cronbach, L.J.: Coefficient alpha and the internal structure of tests. Psychometrika 16(3), 297–334 (1951)

    Article  Google Scholar 

  10. Davis, F.D.: Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q. 319–340 (1989)

    Google Scholar 

  11. Dinev, T., Bellotto, M., Hart, P., Russo, V., Serra, I., Colautti, C.: Privacy calculus model in e-commerce–a study of Italy and the united states. Eur. J. Inf. Syst. 15(4), 389–402 (2006)

    Article  Google Scholar 

  12. Esmaeilzadeh, P., Hemang, S., Cousins, K.: Individuals’ cryptocurrency adoption: a proposed moderated-mediation model. In: AMCIS 2019 (2019)

    Google Scholar 

  13. EUROSTAT: EUROSTAT 2018 (2021). https://ec.europa.eu/eurostat/de/home. Accessed 11 Mar 2023

  14. Fabian, B., Ermakova, T., Sander, U.: Anonymity in bitcoin?–the users’ perspective. In: ICIS 2016 Proceedings (2016)

    Google Scholar 

  15. Fishbein, M.: A theory of reasoned action: some applications and implications (1979)

    Google Scholar 

  16. Foley, S., Karlsen, J.R., Putninš, T.J.: Sex, drugs, and bitcoin: how much illegal activity is financed through cryptocurrencies? Rev. Financ. Stud. 32(5), 1798–1853 (2019)

    Article  Google Scholar 

  17. Glaser, F., Zimmermann, K., Haferkorn, M., Weber, M.C., Siering, M.: Bitcoin-asset or currency? Revealing users’ hidden intentions. In: ECIS 2014 (2014)

    Google Scholar 

  18. Groß, T.: Validity and reliability of the scale internet users’ information privacy concerns (IUIPC). In: PoPETS 2021 (2021)

    Google Scholar 

  19. Hair, J.F., Jr., Hult, G.T.M., Ringle, C.M., Sarstedt, M.: A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage (2021)

    Google Scholar 

  20. Hamm, P.: Acceptance factors for cryptocurrencies as payment systems. In: HICSS 2022 (2022)

    Google Scholar 

  21. Harborth, D., Pape, S.: German translation of the concerns for information privacy (CFIP) construct. Technical report, SSRN (2018)

    Google Scholar 

  22. Harborth, D., Pape, S.: How privacy concerns and trust and risk beliefs influence users’ intentions to use privacy-enhancing technologies – the case of tor. In: HICSS 2019, pp. 4851–4860 (2019)

    Google Scholar 

  23. Ilhan, A., Fietkiewicz, K.J.: Data privacy-related behavior and concerns of activity tracking technology users from Germany and the USA. Aslib J. Inf. Manag. 73(2), 180–200 (2021)

    Article  Google Scholar 

  24. Jabbar, A., Geebren, A., Hussain, Z., Dani, S., Ul-Durar, S.: Investigating individual privacy within CBDC: a privacy calculus perspective. Res. Int. Bus. Financ. 64, 101826 (2023)

    Article  Google Scholar 

  25. Jalan, A., Matkovskyy, R., Urquhart, A., Yarovaya, L.: The role of interpersonal trust in cryptocurrency adoption. J. Int. Financ. Markets Institutions Money 83 (2023)

    Google Scholar 

  26. Jonker, N.: What drives the adoption of crypto-payments by online retailers? Electron. Commer. Res. Appl. 35, 100848 (2019)

    Article  Google Scholar 

  27. Kokolakis, S.: Privacy attitudes and privacy behaviour: a review of current research on the privacy paradox phenomenon. Comput. Secur. 64, 122–134 (2017)

    Article  Google Scholar 

  28. Li, Y.: Empirical studies on online information privacy concerns: literature review and an integrative framework. Commun. Assoc. Inf. Syst. 28(1), 28 (2011)

    Google Scholar 

  29. Lustig, C., Nardi, B.: Algorithmic authority: the case of bitcoin. In: HICSS 2015, pp. 743–752 (2015)

    Google Scholar 

  30. Malhotra, N.K., Kim, S.S., Agarwal, J.: Internet users’ information privacy concerns (IUIPC): the construct, the scale, and a causal model. ISR 15(4), 336–355 (2004)

    Article  Google Scholar 

  31. Mann, H.B., Whitney, D.R.: On a test of whether one of two random variables is stochastically larger than the other. Ann. Math. Stat. 50–60 (1947)

    Google Scholar 

  32. Mashatan, A., Sangari, M.S., Dehghani, M.: How perceptions of information privacy and security impact consumer trust in crypto-payment: an empirical study. IEEE Access 10, 69441–69454 (2022)

    Article  Google Scholar 

  33. Mendoza-Tello, J.C., Mora, H., Pujol-López, F.A., Lytras, M.D.: Disruptive innovation of cryptocurrencies in consumer acceptance and trust. IseB 17, 195–222 (2019)

    Article  Google Scholar 

  34. Merhi, M., Hone, K., Tarhini, A.: A cross-cultural study of the intention to use mobile banking between Lebanese and British consumers: extending UTAUT2 with security, privacy and trust. Technol. Soc. 59 (2019)

    Google Scholar 

  35. Muñoz-Leiva, F., Luque-Martínez, T., Sánchez-Fernández, J.: How to improve trust toward electronic banking. Online Inf. Rev. 34(6), 907–934 (2010)

    Article  Google Scholar 

  36. Nakamoto, S.: Bitcoin: a peer-to-peer electronic cash system. Decentralized Bus. Rev. 21260 (2008)

    Google Scholar 

  37. Poon, W.C.: Users’ adoption of e-banking services: the Malaysian perspective. J. Bus. Ind. Mark. 23(1), 59–69 (2008)

    Article  Google Scholar 

  38. Schallehn, F., Valogianni, K.: Sustainability awareness and smart meter privacy concerns: the cases of us and Germany. Energy Policy 161, 112756 (2022)

    Article  Google Scholar 

  39. Schmitz, C., et al.: Limesurvey: an open source survey tool. LimeSurvey Project Hamburg, Germany (2023). http://www.limesurvey.org. Accessed 11 Mar 2023

  40. Shapiro, S.S., Wilk, M.B.: An analysis of variance test for normality (complete samples). Biometrika 52(3/4), 591–611 (1965)

    Article  MathSciNet  Google Scholar 

  41. Smith, H.J., Dinev, T., Xu, H.: Information privacy research: an interdisciplinary review. MIS Q. 989–1015 (2011)

    Google Scholar 

  42. Smith, H.J., Milberg, S.J., Burke, S.J.: Information privacy: measuring individuals’ concerns about organizational practices. MIS Q. 167–196 (1996)

    Google Scholar 

  43. Stewart, K.A., Segars, A.H.: An empirical examination of the concern for information privacy instrument. ISR 13(1), 36–49 (2002)

    Article  Google Scholar 

  44. Tronnier, F., Harborth, D., Hamm, P.: Investigating privacy concerns and trust in the digital euro in Germany. Electron. Commer. Res. Appl. 53, 101158 (2022)

    Article  Google Scholar 

  45. Udo, G.J.: Privacy and security concerns as major barriers for e-commerce: a survey study. Inf. Manag. Comput. Secur. 9, 165–174 (2001)

    Article  Google Scholar 

  46. Undheim, T.: Why banks fear bitcoin (2014). https://web.archive.org/web/20180424095311/. https://fortune.com/2014/11/20/why-banks-fear-bitcoin/. Accessed 11 Mar 2023

  47. Venkatesh, V., Morris, M.G., Davis, G.B., Davis, F.D.: User acceptance of information technology: toward a unified view. MIS Q. 425–478 (2003)

    Google Scholar 

  48. Voskobojnikov, A., Abramova, S., Beznosov, K., Böhme, R.: Non-adoption of crypto-assets: exploring the role of trust, self-efficacy, and risk. In: ECIS (2021)

    Google Scholar 

  49. Voskobojnikov, A., Obada-Obieh, B., Huang, Y., Beznosov, K.: Surviving the cryptojungle: perception and management of risk among north American cryptocurrency (non)users. In: Bonneau, J., Heninger, N. (eds.) FC 2020. LNCS, vol. 12059, pp. 595–614. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-51280-4_32

    Chapter  Google Scholar 

  50. Wang, H., Lee, M.K., Wang, C.: Consumer privacy concerns about Internet marketing. Commun. ACM 41(3), 63–70 (1998)

    Article  Google Scholar 

  51. Westin, A.F.: Privacy and freedom. Washington Lee Law Rev. 25(1), 166 (1968)

    Google Scholar 

  52. Wooldridge, J.M.: Introductory Econometrics: A Modern Approach. Cengage Learning (2015)

    Google Scholar 

  53. Xu, H., Dinev, T., Smith, J., Hart, P.: Information privacy concerns: linking individual perceptions with institutional privacy assurances. J. Assoc. Inf. Syst. 12(12), 1 (2011)

    Google Scholar 

  54. Zhang, T., Lu, C., Kizildag, M.: Banking “on-the-go’’: examining consumers’ adoption of mobile banking services. Int. J. Qual. Serv. Sci. 10(3), 279–295 (2018)

    Google Scholar 

Download references

Acknowledgements

This work was supported by the German Federal Ministry of Education and Research’s (BMBF) program “Datenschutz: selbstbestimmt in der digitalen Welt” via the SIOC project.

Author information

Authors and Affiliations

  1. Goethe University Frankfurt, Frankfurt, Germany

    Peter Hamm, Sebastian Pape & Kai Rannenberg

Authors
  1. Peter Hamm
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Sebastian Pape
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Kai Rannenberg
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Peter Hamm .

Editor information

Editors and Affiliations

  1. Poznan Supercomputing and Networking Center, Poznań, Poland

    Norbert Meyer

  2. Poznań University of Technology, Poznań, Poland

    Anna Grocholewska-Czuryło

Rights and permissions

Reprints and permissions

Copyright information

© 2024 IFIP International Federation for Information Processing

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Hamm, P., Pape, S., Rannenberg, K. (2024). The Influence of Privacy Concerns on Cryptocurrency Acceptance. In: Meyer, N., Grocholewska-Czuryło, A. (eds) ICT Systems Security and Privacy Protection. SEC 2023. IFIP Advances in Information and Communication Technology, vol 679. Springer, Cham. https://doi.org/10.1007/978-3-031-56326-3_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-56326-3_4

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-56325-6

  • Online ISBN: 978-3-031-56326-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Societies and partnerships

Search

Navigation