Investigating trust and perceived value in cryptocurrencies: do optimism, FinTech literacy and perceived financial and security risks matter?

Abstract

Purpose

This study aims to empirically examine the impact of perceived risks, optimism and financial literacy on trust and the perceived value of cryptocurrencies. It will also examine the impact of trust on the perceived value of cryptocurrencies.

Design/methodology/approach

A quantitative approach is followed. A questionnaire was designed to collect data from 308 respondents in Jordan. The Structural Equation Modeling – Partial Least Squares (SEM-PLS) method was used to evaluate the research model and test hypotheses.

Findings

The results of PLS algorithm analysis showed that perceived risks negatively impact the optimism and trust in cryptocurrencies. This study revealed that while financial literacy minimizes the perceived risks, it serves to enhance optimism and improve the perception of the value of cryptocurrencies. Furthermore, the findings of this study show that optimism plays a significant role in trust and perceived value.

Originality/value

This study provides new insights into the literature on cryptocurrencies adoption, blockchain theory, the theory of trust in financial systems, the role of the optimism factor and the perception of the value of cryptocurrencies. It also provides important practical implications for different stakeholders.

Citation

Shuhaiber, A., Al-Omoush, K.S. and Alsmadi, A.A. (2025), "Investigating trust and perceived value in cryptocurrencies: do optimism, FinTech literacy and perceived financial and security risks matter?", Kybernetes, Vol. 54 No. 1, pp. 330-357. https://doi.org/10.1108/K-03-2023-0435