Investigating Intention to Use Central Bank Digital Currency in Indonesia
Abstract
Central Bank Digital Currency (CBDC) is a digital currency issued by a government-controlled central bank of a particular country. Bank Indonesia as the central bank in Indonesia has been trying to develop a CBDC known as digital rupiah. Digital rupiah is expected to complement and perform same function as the fiat money in Indonesia. Research is needed to identify people’s views on the use of CBDCs. This study seeks to understand the factors that influence intention to use CBDC by adapting Technology Acceptance Model. Data were collected through questionnaires from 565 valid respondents. Partial Least Square-Structural Equation Modeling (PLS-SEM) was used to evaluate the proposed model. This study verifies that perceived usefulness, perceived ease of use, hard trust, and soft trust can influence intention to use CBDC in Indonesia, while personal innovativeness is known to influence perceived usefulness and perceived ease of use.
Downloads
References
T. Mancini Griffoli et al., “Casting Light on Central Bank Digital Currencies,” Staff Discussion Notes, vol. 18, no. 08, p. 1, 2018, doi: 10.5089/9781484384572.006.
T. Zhang and Z. Huang, “Blockchain and central bank digital currency,” ICT Express, vol. 8, no. 2, pp. 264–270, Jun. 2022, doi: 10.1016/j.icte.2021.09.014.
J. Kiff et al., “A Survey of Research on Retail Central Bank Digital Currency,” IMF Working Papers, vol. 20, no. 104, Jun. 2020, doi: 10.5089/9781513547787.001.
V. Sethaput and S. Innet, “Blockchain application for central bank digital currencies (CBDC),” Cluster Comput, Jan. 2023, doi: 10.1007/s10586-022-03962-z.
A. H. Elsayed and M. A. Nasir, “Central bank digital currencies: An agenda for future research,” Res Int Bus Finance, vol. 62, p. 101736, Dec. 2022, doi: 10.1016/j.ribaf.2022.101736.
S. L. Náñez Alonso, J. Jorge-Vazquez, and R. F. Reier Forradellas, “Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 7, no. 1, p. 72, Feb. 2021, doi: 10.3390/joitmc7010072.
R. Hasan, M. Ashfaq, and L. Shao, “Evaluating Drivers of Fintech Adoption in the Netherlands,” Global Business Review, p. 097215092110274, Aug. 2021, doi: 10.1177/09721509211027402.
J. Singh and M. Singh, “Fintech applications in social welfare schemes during Covid times: An extension of the classic TAM model in India,” Int Soc Sci J, Apr. 2023, doi: 10.1111/issj.12406.
H. A. Alshari and M. A. Lokhande, “The impact of demographic factors of clients’ attitudes and their intentions to use FinTech services on the banking sector in the least developed countries,” Cogent Business & Management, vol. 9, no. 1, Dec. 2022, doi: 10.1080/23311975.2022.2114305.
W. Zhang, S. Siyal, S. Riaz, R. Ahmad, M. F. Hilmi, and Z. Li, “Data Security, Customer Trust and Intention for Adoption of Fintech Services: An Empirical Analysis from Commercial Bank Users in Pakistan,” Sage Open, vol. 13, no. 3, Jul. 2023, doi: 10.1177/21582440231181388.
M. M. and K. R. K. Singh Shubhangi and Sahni, “Exploring Antecendents of FinTech Adoption Using Adapted Technology Acceptance Model,” in Advances in Systems Engineering, R. K. Saran V. H. and Misra, Ed., Singapore: Springer Singapore, 2021, pp. 337–352. [Online]. Available: https://doi.org/10.1007/978-981-15-8025-3_34
V. Venkatesh, F. Davis, and M. Morris, “Dead or Alive? The Development, Trajectory and Future Of Technology Adoption Research.,” J Assoc Inf Syst, vol. 8, no. 4, pp. 267–286, Apr. 2007, doi: 10.17705/1jais.00120.
K. Kajol, R. Singh, and J. Paul, “Adoption of digital financial transactions: A review of literature and future research agenda,” Technol Forecast Soc Change, vol. 184, p. 121991, Nov. 2022, doi: 10.1016/j.techfore.2022.121991.
F. D. Davis, “Perceived usefulness, perceived ease of use, and user acceptance of information technology,” MIS Q, vol. 13, no. 3, pp. 319–339, 1989, doi: 10.2307/249008.
N. Singh, N. Sinha, and F. J. Liébana-Cabanillas, “Determining factors in the adoption and recommendation of mobile wallet services in India: Analysis of the effect of innovativeness, stress to use and social influence,” Int J Inf Manage, vol. 50, pp. 191–205, Feb. 2020, doi: 10.1016/j.ijinfomgt.2019.05.022.
A. and I. O. and J. A. N. and K. F. E. B. Mutahar Ahmed M. and Aldholay, “The Moderating Role of Perceived Risk in the Technology Acceptance Model (TAM): The Context of Mobile Banking in Developing Countries,” in Proceedings of International Conference on Emerging Technologies and Intelligent Systems, M. A. and A.-K. M. N. and S. K. Al-Emran Mostafa and Al-Sharafi, Ed., Cham: Springer International Publishing, 2022, pp. 389–403. [Online]. Available: https://doi.org/10.1007/978-3-030-82616-1_34
N. Tomić, Z. Kalinić, and V. Todorović, “Using the UTAUT model to analyze user intention to accept electronic payment systems in Serbia,” Portuguese Economic Journal, Mar. 2022, doi: 10.1007/s10258-022-00210-5.
R. Pérez-Morote, C. Pontones-Rosa, and M. Núñez-Chicharro, “The effects of e-government evaluation, trust and the digital divide in the levels of e-government use in European countries,” Technol Forecast Soc Change, vol. 154, p. 119973, May 2020, doi: 10.1016/j.techfore.2020.119973.
W. A. Alkhowaiter, “Use and behavioural intention of m-payment in GCC countries: Extending meta-UTAUT with trust and Islamic religiosity,” Journal of Innovation & Knowledge, vol. 7, no. 4, p. 100240, Oct. 2022, doi: 10.1016/j.jik.2022.100240.
C. Türker, B. C. Altay, and A. Okumuş, “Understanding user acceptance of QR code mobile payment systems in Turkey: An extended TAM,” Technol Forecast Soc Change, vol. 184, pp. 1–9, Nov. 2022, doi: 10.1016/j.techfore.2022.121968.
E. T. Wonneberger and H. A. Mieg, “Trust in money: hard, soft and idealistic factors in Euro, gold and German community currencies,” Journal of Sustainable Finance and Investment, vol. 1, no. 3–4, pp. 230–240, 2011, doi: 10.1080/20430795.2012.655891.
J. Lu, “Are personal innovativeness and social influence critical to continue with mobile commerce?,” Internet Research, vol. 24, no. 2, pp. 134–159, Apr. 2014, doi: 10.1108/IntR-05-2012-0100.
J. Kim and S. Forsythe, “Factors affecting adoption of product virtualization technology for online consumer electronics shopping,” International Journal of Retail & Distribution Management, vol. 38, no. 3, pp. 190–204, Mar. 2010, doi: 10.1108/09590551011027122.
Z. Kalinic and V. Marinkovic, “Determinants of users’ intention to adopt m-commerce: an empirical analysis,” Information Systems and e-Business Management, vol. 14, no. 2, pp. 367–387, May 2016, doi: 10.1007/s10257-015-0287-2.
R. Agarwal and J. Prasad, “A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology,” Information Systems Research, vol. 9, no. 2, pp. 204–215, Jun. 1998, doi: 10.1287/isre.9.2.204.
M. Fagan, C. Kilmon, and V. Pandey, “Exploring the adoption of a virtual reality simulation,” Campus-Wide Information Systems, vol. 29, no. 2, pp. 117–127, Mar. 2012, doi: 10.1108/10650741211212368.
F. Tronnier, D. Harborth, and P. Hamm, “Investigating privacy concerns and trust in the digital Euro in Germany,” Electron Commer Res Appl, vol. 53, p. 101158, May 2022, doi: 10.1016/j.elerap.2022.101158.
J.-C. Gu, S.-C. Lee, and Y.-H. Suh, “Determinants of behavioral intention to mobile banking,” Expert Syst Appl, vol. 36, no. 9, pp. 11605–11616, Nov. 2009, doi: 10.1016/j.eswa.2009.03.024.
C. M. Ringle, S. Wende, and J.-M. Becker, “SmartPLS 4.” SmartPLS, Oststeinbek, 2022. [Online]. Available: https://www.smartpls.com
J. Hair, C. L. Hollingsworth, A. B. Randolph, and A. Y. L. Chong, “An updated and expanded assessment of PLS-SEM in information systems research,” Industrial Management & Data Systems, vol. 117, no. 3, pp. 442–458, 2017, doi: 10.1108/IMDS-04-2016-0130.
J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM,” European Business Review, vol. 31, no. 1, pp. 2–24, Jan. 2019, doi: 10.1108/EBR-11-2018-0203.
J. Benitez, J. Henseler, A. Castillo, and F. Schuberth, “How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research,” Information & Management, vol. 57, no. 2, p. 103168, Mar. 2020, doi: 10.1016/j.im.2019.05.003.
N. Singh, N. Sinha, and F. J. Liébana-Cabanillas, “Determining factors in the adoption and recommendation of mobile wallet services in India: Analysis of the effect of innovativeness, stress to use and social influence,” Int J Inf Manage, vol. 50, pp. 191–205, Feb. 2020, doi: 10.1016/j.ijinfomgt.2019.05.022.
H. A. Alnemer, “Determinants of digital banking adoption in the Kingdom of Saudi Arabia: A technology acceptance model approach,” Digital Business, vol. 2, no. 2, p. 100037, 2022, doi: 10.1016/j.digbus.2022.100037.
S. Talwar, A. Dhir, A. Khalil, G. Mohan, and A. K. M. N. Islam, “Point of adoption and beyond. Initial trust and mobile-payment continuation intention,” Journal of Retailing and Consumer Services, vol. 55, p. 102086, Jul. 2020, doi: 10.1016/j.jretconser.2020.102086.
K. Solberg Söilen and L. Benhayoun, “Household acceptance of central bank digital currency: the role of institutional trust,” International Journal of Bank Marketing, vol. 40, no. 1, pp. 172–196, Feb. 2022, doi: 10.1108/IJBM-04-2021-0156.
S. Kumar and M. Dami, “Integrating Diffusion of Innovation to Technology Acceptance Model: A Survey of Millennials’ Intention to Use E-Money Card,” Proceedings of the International Conference on Business and Engineering Management (ICONBEM 2021), 2021. doi: 10.2991/aebmr.k.210522.026.
Download PDF: 823 times
Copyright (c) 2023 Journal of Information Systems and Informatics
This work is licensed under a Creative Commons Attribution 4.0 International License.
- I certify that I have read, understand and agreed to the Journal of Information Systems and Informatics (Journal-ISI) submission guidelines, policies and submission declaration. Submission already using the provided template.
- I certify that all authors have approved the publication of this and there is no conflict of interest.
- I confirm that the manuscript is the authors' original work and the manuscript has not received prior publication and is not under consideration for publication elsewhere and has not been previously published.
- I confirm that all authors listed on the title page have contributed significantly to the work, have read the manuscript, attest to the validity and legitimacy of the data and its interpretation, and agree to its submission.
- I confirm that the paper now submitted is not copied or plagiarized version of some other published work.
- I declare that I shall not submit the paper for publication in any other Journal or Magazine till the decision is made by journal editors.
- If the paper is finally accepted by the journal for publication, I confirm that I will either publish the paper immediately or withdraw it according to withdrawal policies
- I Agree that the paper published by this journal, I transfer copyright or assign exclusive rights to the publisher (including commercial rights)