 The Six Ways to Build Trust and Reduce Privacy Concern in a Central Bank Digital Currency (CBDC)Alex Zarifis () and
Xusen Cheng ()
Chapter 6 in Business Digital Transformation, 2024, pp 115-138 from Springer Abstract: Abstract A Central Bank Digital Currency (CBDC) can offer several benefits for governments and citizens such as faster transactions at a lower cost, and richer information on consumers’ behaviour. It is important however that the consumer’s perspective on the adoption of CBDCs is not neglected. A CBDC needs consumers to trust and use it, to avoid either a complete failure, or a partial failure. A partial failure may lead to CBDCs being one of two parallel systems’ consumers use. This research uses a survey analysed by structural equation modelling to identify the six ways to build trust in a CBDC so it can be successfully adopted and used extensively: (1) Trust must be built in the government and the central bank issuing a CBDC, (2) expressed guarantees for the user of a CBDC must be provided, (3) the positive reputation of existing CBDCs active elsewhere must be utilized, (4) the automation and reduced human involvement achieved by a CBDC technology can be helpful, (5) specific trust building functionality of a CBDC can be utilized, and (6) specific privacy features of the CBDC wallet app and back-end processes such as anonymity can be beneficial. Date: 2024 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-33665-2_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-33665-2_6 Access Statistics for this chapter More chapters in Springer Books from Springer |
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