Abstract
A Central Bank Digital Currency (CBDC) can offer several benefits for governments and citizens such as faster transactions at a lower cost, and richer information on consumers' behaviour. It is important however that the consumer's perspective on the adoption of CBDCs is not neglected. A CBDC needs consumers to trust and use it, to avoid either a complete failure, or a partial failure. A partial failure may lead to CBDCs being one of two parallel systems' consumers use. This research uses a survey analysed by structural equation modelling to identify the six ways to build trust in a CBDC so it can be successfully adopted and used extensively: (1) Trust must be built in the government and the central bank issuing a CBDC, (2) expressed guarantees for the user of a CBDC must be provided, (3) the positive reputation of existing CBDCs active elsewhere must be utilized, (4) the automation and reduced human involvement achieved by a CBDC technology can be helpful, (5) specific trust building functionality of a CBDC can be utilized, and (6) specific privacy features of the CBDC wallet app and back-end processes such as anonymity can be beneficial.
Original language | English |
---|---|
Title of host publication | Business Digital Transformation |
Subtitle of host publication | Selected Cases from Industry Leaders |
Publisher | Springer International Publishing |
Pages | 115-138 |
Number of pages | 24 |
ISBN (Electronic) | 9783031336652 |
ISBN (Print) | 9783031336645 |
DOIs | |
Publication status | Published - 6 Dec 2023 |