Would You Pay with a Digital Euro? Investigating Usage Intention in Central Bank Digital Currency

11 Pages Posted: 26 Aug 2022

Date Written: August 18, 2021

Abstract

Worldwide, central banks are working on the introduction of Central Bank Digital Currency (CBDC) as a new form of currency for digital transactions in response to cryptocurrencies and a decrease in cash payments. We investigate usage intention in specific retail CBDC, the digital euro, for the first time, and study the topic from a user-centric perspective. The UTAUT model extended with additional factors identified to be of importance for individuals in digital payment research – trust dimensions and privacy concerns – was used. Our work accounts for 69.2% of the variance in a user's intention to adopt the digital euro in our survey with 303 respondents. The findings suggest that strategic decision-maker should focus on the creation of trust in the currency, underlying technology and the central bank. The digital euro's performance as a payment solution is found to be the most important factor for behavioral intention to use.

Keywords: Central Bank Digital Currency, Digital Euro, CBDC, Technology Adoption, Digital Payment

JEL Classification: G02,

Suggested Citation

Tronnier, Frédéric and Kakkar, Seddanth, Would You Pay with a Digital Euro? Investigating Usage Intention in Central Bank Digital Currency (August 18, 2021). Available at SSRN: https://ssrn.com/abstract=4194173 or http://dx.doi.org/10.2139/ssrn.4194173

Frédéric Tronnier (Contact Author)

Goethe University Frankfurt ( email )

Finance Department
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Seddanth Kakkar

Union Investment ( email )

Wiesenhüttenplatz 25
Frankfurt am Main, 60329
Germany

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