Evaluating Effects of the Payment Ecosystem on Central Bank Digital Currency Adoption and Design

Chiara DiGiammara, Anna Omarini, Robert J. Kauffman, Kim Kwansoo

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Central bank digital currency (CBDC) has become a discussion topic with worldwide economic and societal relevance. Payment system efficiency is a top driver for digital currency adoption. We examine literature gaps for payment ecosystem impact for adoption and design and conduct a test for 65 World Bank countries. We assess payment alternatives and preference impacts and estimate least squares and limited dependent variables regressions based on cross-national data. CBDC adoption is driven by payment ecosystems, alternative payment characteristics, e-money usage, perceived security, and infrastructure. This signals that user familiarity with digital payments, trust in authorities, and structural capabilities support adoption. It also is inversely related to alternatives that dampen the need for CBDC. Transaction volume and trust in authorities are linked to choosing a central database instead of a digital ledger technology infrastructure. Deviations occur due to ambiguous effects of cash and ledger technology usage for CBDC adoption and industry concentration, architecture, and systems linkages.
Original languageEnglish
Title of host publicationProceedings of the 56th Annual Hawaii International Conference on System Sciences
EditorsTung X. Bui
Number of pages10
Place of PublicationHonolulu
PublisherAssociation for Information Systems
Publication date2023
ISBN (Print)9780998133164
Publication statusPublished - 2023
EventThe 56th Hawaii International Conference on System Sciences. HICSS 2023 - Lahaina, United States
Duration: 3 Jan 20236 Jan 2023
Conference number: 56


ConferenceThe 56th Hawaii International Conference on System Sciences. HICSS 2023
Country/TerritoryUnited States
Internet address
SeriesProceedings of the Annual Hawaii International Conference on System Sciences

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