Determinants of individuals’ intentions to use central bank digital currency: evidence from China

Abstract

ABSTRACT The application of a central bank digital currency (CBDC) is promising a substantial alteration to the payment system and the provision of a safe, efficient, and inclusive financial system. However, the determinants of individuals’ behavioural intentions (BIs) toward using this financial technology are still unclear. Based on the integration of the technology acceptance model and innovation diffusion theory, this study develops a theoretical framework, which was validated through a questionnaire survey undertaken with 344 CBDC users from 10 pilot areas in China. The results suggest that the proposed theoretical framework is powerful for explaining individuals’ BIs to use CBDC. Furthermore, the results indicate that perceived usefulness, perceived security, and perceived ease of use, as well as awareness all positively and directly influence individuals’ BIs to use CBDC. Although perceived compatibility does not directly influence individuals’ BIs to use CBDC, its impact on individuals’ BIs to use CBDC is fully mediated by perceived security, perceived usefulness, and perceived ease of use. This study contributes to the CBDC literature by investigating individuals’ BIs to use CBDC. This study also offers important practical implications in fostering the application of CBDC.