Financial Innovation, Government Support, and Transnational Mobility: Cryptocurrency Adoption by International Students in Peripheral Economy

Aim/Purpose: This study investigates the key factors influencing cryptocurrency adoption among international students in Northern Cyprus. It addresses the gap in understanding how technological and motivational factors affect adoption decisions in this demographic. Background: By applying the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2), the study examines how facilitating conditions, hedonic motivation, effort expectancy, and performance expectancy drive adoption, while also examining the potential moderating influence of government support. Although government support was expected to be significant, the findings show otherwise, a surprising result that reshapes assumptions about its role. Methodology: A quantitative research design was employed, utilizing snowball sampling to distribute structured questionnaires to 305 international students. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with bootstrap resampling techniques. Contribution: This paper contributes to the growing body of knowledge on cryptocurrency adoption by focusing on international students, an underrepresented group in adoption studies, and applying the UTAUT2 model in a unique regional context. Findings: Facilitating conditions, hedonic motivation, effort expectancy, and performance expectancy significantly influence students’ intention to adopt cryptocurrencies, while government support does not have a significant moderating effect. Recommendations for Practitioners: Policymakers, educators, and cryptocurrency service providers should emphasize usability, accessibility, and user motivation rather than relying on regulatory promotion to encourage adoption. Recommendation for Researchers: Future studies should investigate other potential moderators beyond government support, such as cultural or institutional trust, and apply the UTAUT2 model in other emerging markets or student populations. Impact on Society: The results suggest that cryptocurrency adoption in emerging markets can progress without strong government intervention, being driven instead by individual needs and technological access. This has implications for financial inclusion and digital economy strategies. Future Research: Subsequent studies should consider longitudinal designs, qualitative insights, and comparative analyses with domestic student groups or other regions to deepen contextual understanding.