Decrypting the Digital Vault by Understanding Cryptocurrency Adoption Challenges Among Gen Z: Case of Sri Lanka

Abstract

Background: As digital natives, Gen Zs are at the forefront of embracing cryptocurrencies for technological innovation and financial empowerment. This study is part of a larger effort to understand the evolving trends in the world of cryptocurrency, highlighting the need for more research in this area.

Objective: This study sought to explore the diverse challenges faced by Gen Zs while adapting to the usage of cryptocurrencies within the Sri Lankan context.

Methodology: The researchers conducted this study using an inductive qualitative approach. Data were gathered through in-depth interviews with 24 participants, employing snowball sampling to recruit participants. The collected data were then analysed using thematic analysis, and the findings were presented in prose form.

Results: The results of this study revealed three key themes that significantly impact the usage of cryptocurrency as a digital asset among Gen Zs in Sri Lanka: (i) Trust and security concerns, (ii) Market volatility and investment risks, (iii) Regulatory approach and cryptocurrency transactions.

Conclusion: Although cryptocurrency has gained acceptance among Gen Zs, its usage is determined by factors that ensure that users harness its full benefits.

Contribution: This study has revealed the diverse challenges that Gen Zs embraced when adopting cryptocurrencies.