Research in blockchain technology: Determinants of cryptocurrency use among countries

Blockchain technology is the foundation for cryptocurrencies, facilitating their use and global adoption. However, the extent of acceptance of cryptocurrencies varies significantly across different political regimes. The cryptocurrency literature has yet to empirically examine the relationships among cryptocurrency usage, political regimes, technology, society, institutions, and the macro-environment. Therefore, this study examines the influence of governance on cryptocurrency ownership, highlighting the mediating roles of financial systems and the macroeconomic environment in both autocratic and democratic contexts. The study employs partial least squares structural equation modeling (PLS-SEM), a statistical technique for analyzing complex relationships between observed and latent variables, using WarpPLS 8.0 software. This approach enables an in-depth examination of how governance, financial systems, and macroeconomic conditions interplay to influence cryptocurrency ownership. Data from 43 countries spanning 9 years (2016–2024) are used, encompassing a mix of autocratic and democratic regimes. The dataset includes variables such as governance quality, financial market efficiency, banking system quality, and trust within financial markets. Macroeconomic conditions and cryptocurrency ownership rates were also considered. The results indicate that stronger governance, stable macroeconomic conditions, and advanced financial and banking infrastructures are associated with lower levels of cryptocurrency ownership. Conversely, weak regulatory frameworks and unreliable financial systems appear to foster greater investment in cryptocurrencies. By illustrating the interconnectedness of governance, financial systems, and macroeconomic conditions, this research contributes a new perspective on the global variation in cryptocurrency adoption. These findings are essential for informing future regulatory frameworks and financial policies amid a growing digital landscape economy.