Cryptocurrency and initial trust formation: an empirical investigation into the dynamics of willingness to use in financial transactions

Cryptocurrency adoption for everyday transactions remains limited, particularly among nonusers, due to concerns about transparency and trust in decentralized systems. Drawing on trust theory, this study examines how initial trust shapes willingness to use cryptocurrencies for transactions in the UK. Survey data were collected from 402 nonusers between 14 December 2023 and 7 February 2024 and analyzed using partial least squares structural equation modeling (PLS-SEM). The proposed model demonstrates strong explanatory power (R 2 = 0.80 for initial trust, 0.45 for perceived risk, and 0.52 for willingness to use). The results revealed that transparency, anonymity, ease of use, security, privacy, and knowledge significantly influence initial trust, which in turn strongly predicts willingness to use cryptocurrencies. Contrary to traditional financial adoption models, perceived risk does not significantly affect willingness to use, suggesting that initial trust can override risk concerns in decentralized finance. Theoretically, this study extends trust theory by conceptualizing initial trust in contexts with minimal institutional assurances. Practically, the findings highlight the need for initial trust-building strategies, such as transparent governance, clear communication, and user education, to foster broader cryptocurrency adoption and digital financial inclusion.