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Paper Number

1743

Abstract

During the global financial crisis in 2008, trust in established financial intermediaries declined sharply. In reaction, blockchain technology was developed as an alternative system to facilitate financial transactions devoid of intermediaries. The application of blockchain in the financial sector brought a new paradigm called Decentralized Finance. Employing a modified technology acceptance model, our study aims at examining the relationship of distrust in financial intermediaries and consumer’s behavioral intention to use Decentralized Finance. Even though this relationship is well-documented regarding the motivation of the development of blockchain technology, as well as in cases of unstable financial systems, empirical data from our survey research does not support this relationship in the context of consumer adoption. Our study contributes to the theory on the foundations of DeFi and the impact of blockchain technology, which must be revised by future research. Further, we propose a trust paradox in the financial sector.

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