Consumer demand for central bank digital currency as a means of payment

Luca Nocciola and Alejandro Zamora-Pérez

Research Bulletin, 2024, vol. 122

Abstract: What factors could drive transactional demand for central bank digital currency (CBDC)? We analyse payment survey data to arrive at a framework for understanding the role of adoption frictions and design strategies in shaping CBDC demand. The results of our analysis show that, while consumers may initially prefer to use more traditional payment methods, a design tailored to their specific needs could significantly increase CBDC uptake. Raising awareness and capitalising on network effects could also boost demand for CBDC. JEL Classification: E41, G32

Keywords: CBDC; money demand; payments; random utility; structural model (search for similar items in EconPapers)
Date: 2024-09
Note: 2600378
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