The Factors Affecting Social Readiness in Acceptance of Cryptocurrency as a Financial Asset: Examining the Moderating Role of Financial Literacy with Special Reference to the Perceptions of Professionals in Colombo District

Cryptocurrency has emerged as a disruptive financial innovation with growing global interest, yet its acceptance in developing countries like Sri Lanka remains limited. This study investigates the factors influencing social readiness to adopt cryptocurrency as a financial asset among professionals in the Colombo District. Grounded in a conceptual framework comprising technological awareness and literacy, government intervention, and perceived benefits and trust with financial literacy as a moderating variable, the study adopts a quantitative approach using survey data collected from 151 professionals. Data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that both technological awareness and perceived benefits and trust significantly influence social readiness. Conversely, government intervention was found to have no statistically significant effect, reflecting ambiguity in the current regulatory landscape. Financial literacy moderates the relationship between perceived benefits and readiness, indicating that individuals with higher financial literacy may demonstrate more caution, despite recognizing the advantages of cryptocurrency. The study concludes that enhancing digital competencies and building trust are critical to fostering wider societal acceptance of cryptocurrencies in Sri Lanka. It also highlights the importance of clear regulatory communication and appropriately framed financial education. These insights offer valuable implications for policymakers, educators, financial institutions, and technology developers aiming to promote responsible adoption of cryptocurrency in emerging economies. Limitations related to sampling, generalizability, and self-reporting are acknowledged, and future research directions are proposed to expand the theoretical and empirical scope of this study.