The Antecedents to the Actual Use of Digital Currencies in Ghana

Introduction

Citizens are a key component of any electronic innovation (for example, digital addressing systems, electronic government (e-government systems), and innovations for determining identity) (Saif Almuraqab, 2020). The inclination for digital currency adoption would propel the acceptance and use of these technologies (Del Río, 2017). Given that many organizations, particularly the Government of Ghana, Ghana Interbank Payment, and the Central Bank of Ghana, have great expectations for the potential of digital currencies to contribute to the fight against COVID-19 and to promote economic growth, it is imperative to be aware of the technological and behavioral antecedents that influence the use of technology and how to account for them. As defined by the European Central Bank, a virtual currency is "a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community” (Rose, 2015, p. 617). Digital currencies are forms of virtual currencies that are electronically created and stored (Saif-Almuraqab, 2019). Examples of digital currencies include Bitcoin, Central bank digital currencies, and mobile money e-cash. Currently, there is a wide preference for traditional cash compared to the use of digital currencies for most transactions in developing countries (Rahman, 2015). This is due to the inherent risks that characterize the use of digital currencies that could result in a loss of monetary assets (Narteh et al., 2017). Moreover, because of the virtual context of digital currency activities, some individuals are skeptical about using the technology (Schuh & Shy, 2016). However, for a greater proportion of non-banked are citizens without formal schooling, their adoption and use of digital currencies may be curtailed. Furthermore, “mobile phones and their related services operate by relying on formal languages such as English” (Senyo & Osabutey, 2020, p. 1). This situation may not benefit a greater proportion of people in developing countries with limited educational and technological competence (Zhu et al., 2003). To counter these social inequalities, knowing the antecedents to the use of digital currencies will enable service providers and the Central Bank of Ghana to redesign their services and regulations to improve the Government’s steps towards the creation of a cashless economy. Antecedents are therefore described in this study as the existing technological and behavioral factors that influence the adoption and actual use of digital currencies.