Analyzing consumer perceptions and adoption intentions of central bank digital currency: a case of the digital rupee

Abstract

Purpose This paper aims to comprehensively analyze the factors influencing the adoption intentions of the digital rupee, a digital currency, among users in India. Design/methodology/approach Drawing upon the Technology Acceptance Model (TAM), the study examines the relationships between cognitive beliefs (perceived usefulness, perceived ease of use, perceived trust, perceived self-efficacy, perceived cost and awareness), affective belief (attitude) and adoption intention of the digital rupee. The study uses a structured questionnaire to collect primary data from 1,707 respondents, which are then analyzed using structural equation modeling. Findings The results indicate that perceived usefulness and perceived ease of use significantly impact users' attitudes toward the digital rupee, as well as their adoption intentions. The findings further reveal that perceived trust, perceived self-efficacy, and awareness positively influence attitude and adoption intention. On the other hand, perceived cost exhibits a negative effect on attitude and adoption intention. These results provide empirical evidence on the factors that shape users' attitudes and intentions toward adopting the digital rupee. Research limitations/implications The research methodology used in this study ensures rigorous data collection and analysis. The structured questionnaire enabled the collection of detailed information from a large sample of respondents, allowing for robust statistical analysis. The utilization of structural equation modeling facilitated the examination of complex relationships among variables, enhancing the reliability and validity of the findings. Practical implications The study's findings offer practical guidance for policymakers, financial institutions and researchers in shaping digital currency regulatory frameworks, tailored financial services and further exploration of adoption dynamics. Social implications The research has social implications by potentially influencing the way individuals and communities in India engage with digital currencies, impacting financial inclusion and digital economic participation. Originality/value This research contributes to the understanding of the adoption of digital currencies in India and provides valuable insights for policymakers, financial institutions and researchers in the field of digital finance and technology adoption.