Functions of currency before and after COVID-19: Is bitcoin sustainable for tourism?

Abstract

The specific purposes of this study are (1) to analyze whether there is a difference in the recognition of tourists in the functions of currency according to the type of currency spent by tourists before and after COVID-19; (2) to identify why tourists employ Bitcoin among the functions of currency; and (3) to identify tourists’ intentions to continue to using Bitcoin according to the degree of recognition of the function of virtual currency in Korea. Both quantitative and qualitative methods, including a one-way analysis of variance, a paired t-test, a simple regression analysis, and an in-depth interview, were employed. One of the conclusions implies that tourists in a tourism destination still prefer paying with cash rather than paying with card or virtual currency. Moreover, the study discovered that tourists count more on virtual currency and prepare for a future with virtual currency when a factor that has an unstable impact on social economy, such as COVID-19, happens. As to the functions of Bitcoin, tourists appeared to place a great importance on its storage, value, satisfaction, convenience, and investment. Additionally, the study showed that tourists intend to continue using Bitcoin due to the same satisfaction, convenience, and investment attributed to Bitcoin. More discussion and implications were provided.