User Adoption of Central Bank Digital Currency: A PLS-SEM Approach

Abstract

Purpose: This paper explores the factors influencing the intention of customers to adopt Central Bank Digital Currency (CBDC) in developing countries such as India. It uses the extended UTAUT model to examine how digital financial literacy and perceived anonymity influence customer willingness to adopt CBDC. This paper also aims to investigate the mediating role of perceived privacy riskiness. Design/methods/approach: The data was collected through an online survey of m-payment users. In total, 397 responses were collected and used for further analysis. The PLS-SEM approach was used to analyze the data. Findings: Digital financial literacy and perceived anonymity are crucial factors because they positively influence the behavioural intention to adopt CBDC among m-Payment users, along with performance expectancy, effort expectancy, and social influence. Lastly, perceived privacy riskiness negatively impacts the behavioural intention to use CBDC, but it does not mediate. Originality/ Value: This is the first scholarly investigation that uses the extended UTAUT model by incorporating digital financial literacy and perceived anonymity.