Unveiling the influencing mechanism underlying users’ adoption and recommend intentions of central bank digital currency: A behavioral reasoning theory perspective

Abstract

Despite the enormous benefits of the implementation of central bank digital currency (CBDC), the realization of these anticipated benefits depends on users' adoption and recommendations resulting from the consideration of both facilitators and inhibitors. Drawing on the behavioral reasoning theory (BRT), this study endeavors to unveil the influencing mechanism underlying users' CBDC adoption and recommend intentions using a hybrid approach integrating qualitative study (i.e., thematic analysis) and quantitative study (i.e., PLS-SEM). The qualitative research results indicate that relative advantage, incentive measures, government support, compatibility, and convenience are the “reasons for” users' CBDC adoption and recommend intentions, while tradition barrier, risk barrier, usage barrier, and image barrier are the “reasons against” users' CBDC adoption and recommend intentions. Further, the quantitative analysis of 638 pilot CBDC users suggests that users' CBDC adoption intentions positively influence their CBDC recommend intentions. “Reasons for” positively influence both users' attitudes and adoption intentions toward CBDC, whereas “reasons against” only negatively influence users' adoption intentions toward CBDC. Values (openness to change) positively influence users' “reasons for” and attitudes toward CBDC, and negatively influence users' “reasons against” adopting CBDC. Financial literacy strengthens the paths between “reasons for” and adoption intentions and weakens the paths between “reasons against” and adoption intentions. Theoretically, this study contributes by providing a thorough knowledge of users’ values, reasons, attitudes, and adoption and recommend intentions toward CBDC. Practically, this study renders insightful policy implications for central banks worldwide to promote CBDC applications.