Analysing the Users’ Willingness to Adopt Central Bank Digital Currency: Modelling the Interplay of Trust and Likelihood of Adoption

This research investigated the impact of digital financial literacy (DFL), digital payments experience (DPE) and perceived risk (PR) on the willingness to adopt (WTA) the Central Bank Digital Currency (CBDC), with trust (TR) and likelihood of adoption (LOA) serving as interplay factors. This research examines the interplay of these dimensions using the Unified Theory of Acceptance and Use of Technology framework and applies structural equation modelling for a quantitative analysis via a meticulously designed questionnaire administered to 590 respondents across the cities involved in the first round of pilot testing in India. The analysis of data was performed through Smart-PLS 4, examining the influence of TR and LOA by bootstrapping with 5,000 samples, which assessed the direct and mediating effects among the variables, alongside the implementation of IPMA analysis for the target constructs. DFL, DPE and PR substantially affect TR and LOA and they serve as significant mediators in the relationship among these factors and users’ WTA CBDC. The research offers policymakers a chance to tackle issues of trust and the adoption probability, since these were the primary determinants influencing behavioural intention.