Advertisement

Consumer Trust in Digital Currency Enabled Transactions

  • Alex Zarifis
  • Leonidas Efthymiou
  • Xusen Cheng
  • Salomi Demetriou
Conference paper
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 183)

Abstract

This research applies theories of trust from e-commerce to digital currencies. In particular trust in business to consumer transactions carried out using digital currencies such as Bitcoin is explored. A model of online trust is considered to be valid in this different transaction context but the significance of each construct changes and some extensions are necessary. In particular the role of institutional trust in transactions has differences that are explored and new constructs are suggested. These are incorporated into a new digital currency enabled transactions trust model.

Keywords

Digital currency Trust Bitcoin E-commerce Business to consumer 

References

  1. 1.
    Hett, W.: Digital currencies and the financing of terrorism. Richmond J. Law Technol. 15(2) (2008). http://law.richmond.edu/jolt/vl5i2/article4.pdf
  2. 2.
    European Central Bank: Virtual Currency Schemes. Frankfurt am Main: European Central Bank (2012)Google Scholar
  3. 3.
    Moore, T., Christin, N.: Beware the middleman: empirical analysis of bitcoin-exchange risk. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 25–33. Springer, Heidelberg (2013)CrossRefGoogle Scholar
  4. 4.
    Iwamura, M., Kitamura, Y., Tsutomu, M.: Is bitcoin the only cryptocurrency in the town? Economics of Cryptocurrency and Friedrich A. Hayek (2014). http://ssrn.com/abstract=2405790 or http://dx.doi.org/10.2139/ssrn.2405790
  5. 5.
    Nakamoto, S.: Bitcoin: a peer-to-peer electronic cash system (2009). http://bitcoin.org/bitcoin.pdf
  6. 6.
  7. 7.
    Gotthold, V.K., Eckert, D.: Germany recognizes Bitcoin as ‘private money’ (2013). http://www.welt.de/finanzen/geldanlage/article119086297/Deutschland-erkennt-Bitcoin-als-privates-Geld-an.html
  8. 8.
    Wikipedia: Legality of Bitcoins by country (2014). http://en.wikipedia.org/wiki/Legality_of_Bitcoins_by_country
  9. 9.
    Trautman, L.J.: Virtual currencies: bitcoin & what now after Liberty Reserve, Silk Road, and Mt. Gox? Richmond J. Law Technol. 20(4) (2014) http://ssrn.com/abstract=2393537 or http://dx.doi.org/10.2139/ssrn.2393537
  10. 10.
    Garon, J.: Mortgaging the meme: lessons for financing disruptive innovation. 10 Nw. J. Tech. Intell. Prop., 441–442 (2012). http://ssrn.com/abstract=1929530
  11. 11.
    Bourreau, M., Marianne, V.: Cooperation for Innovation in Payment Systems: The Case of Mobile Payments, 79 Communications and Strategies, vol. 95 (2010). http://ssrn.com/abstract=1810892
  12. 12.
    Akins, B.W., Chapman, J.L., Gordon, J.M.: A Whole New World: Income Tax Considerations of the Bitcoin Economy, Pittsburgh Tax Review (2013). http://ssrn.com/abstract=2394738
  13. 13.
    Jarvenpaa, S., Knoll, K., Leidner, D.: Is anybody out there? Antecedents of trust in global virtual teams. J. Manag. Inf. Syst. 14, 29–64 (1998)Google Scholar
  14. 14.
    McKnight, D.H., Chervany, N.L.: What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. Int. J. Electron. Commer. 6, 35–59 (2002)Google Scholar
  15. 15.
    Gefen, D.: Reflections on the dimensions of trust and trustworthiness among online consumers. ACM Sigmis Database 33, 38–53 (2002)CrossRefGoogle Scholar
  16. 16.
    Mayer, R.C., Davis, J.H., Schoorman, F.D.: An integrative model of organizational trust. Acad. Manag. Rev. 20, 709–734 (1995)Google Scholar
  17. 17.
    McKnight, D.H., Cummings, L.L., Chervany, N.L.: Initial trust in new organizational relationships. Acad. Manag. Rev. 23, 473–490 (1998)Google Scholar
  18. 18.
    Pearce, W.B.: Trust in interpersonal relationships. Speech monographs, pp. 832–835 (2007)Google Scholar
  19. 19.
    Gefen, D., Karahanna, E., Straub, D.W.: Trust and TAM in online shopping: an integrated model. Manage. Inf. Syst. Q. 27(1), 51–90 (2003)Google Scholar
  20. 20.
    Guo, Y., Barnes, S.: Virtual item behaviour in virtual worlds: an exploratory investigation. Electron. Commer. Res. 9, 77–96 (2009)CrossRefGoogle Scholar
  21. 21.
    Zarifis, A.: The Relative Advantage of Collaborative Virtual Environments in Multichannel Retail A thesis submitted to The University of Manchester for the degree of Doctor of Philosophy in the Faculty of Humanities (2014)Google Scholar
  22. 22.
    Shapiro, S.P.: The social control of impersonal trust. Am. J. Sociol. 93(3), 623–658 (1987)CrossRefGoogle Scholar
  23. 23.
    Zucker, L.G.: Production of trust: institutional sources of eco-nomicstructure, 1840–1920. In: Staw, B.M., Cummings, L.L. (eds.) Research in Organizational Behavior, vol. 8, pp. 53–111. JAI Press, Greenwich (1986)Google Scholar
  24. 24.
    Fishbein, M., Ajzen, I.: Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Addison-Wesley, Reading (1975)Google Scholar
  25. 25.
    Gruber, S.M.: Trust, Identity, and Disclosure: Are Bitcoin Exchanges the Next Virtual Havens for Money Laundering and Tax Evasion? (November 13, 2013). Sarah Gruber, Note, Trust, Identity, and Disclosure: Are Bitcoin Exchanges the Next Virtual Havens for Money Laundering and Tax Evasion?, 32 Quinnipiac L. Rev., 135 (2013). http://ssrn.com/abstract=2312110
  26. 26.
    Vitt, D.C.: Breaking Bitcoin: Does Cryptocurrency Exchange Activity Lead to Increased Real Activity Outside Cryptocurrency Exchanges? (2013). The Pittsburgh Tax Review, http://ssrn.com/abstract=2371343 or http://dx.doi.org/10.2139/ssrn.2371343
  27. 27.
    Bohlen, J.M., Beal, G.M.: The Diffusion Process”, Special Report No. 18 (Agriculture Extension Service, Iowa State College) vol. 1, pp. 56–77 (1957). http://www.soc.iastate.edu/extension/pub/comm/SP18.pdf
  28. 28.
    Jeong, S.: The Bitcoin Protocol as Law, and the Politics of a Stateless Currency (2013). SSRN: http://ssrn.com/abstract=2294124 or http://dx.doi.org/10.2139/ssrn.2294124
  29. 29.
    Pavlou, P.A., Fygenson, M.: Understanding and predicting electronic commerce adoption: an extension of the theory of planned behavior. Manag. Inf. Syst. Q. 30(1), 115–143 (2006)Google Scholar
  30. 30.
    Choudhury, V., Karahanna, E.: The relative advantage of electronic channels: a multidimensional view. Manag. Inf. Syst. Q. 32, 179–200 (2008)Google Scholar
  31. 31.
    Denzin, N.K., Yvonna, S.L.: Collecting and Interpreting Qualitative Materials. Sage, Thousand Oaks (2003)Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Alex Zarifis
    • 1
  • Leonidas Efthymiou
    • 1
  • Xusen Cheng
    • 2
  • Salomi Demetriou
    • 1
  1. 1.University of Nicosia, UNIC OnlineNicosiaCyprus
  2. 2.Department of E-Business, School of Information Technology and ManagementUniversity of International Business and EconomicsBeijingChina

Personalised recommendations