Exploring Factors Affecting Central Bank Digital Currency Adoption: A Perspective from Generation Z

The rise of Central Bank Digital Currency (CBDC) is a crucial development in the evolution of financial systems. The purpose of this study was to investigate Gen-Z’s behavioural intention to adopt CBDC in northern India, using the Unified Theory of Acceptance and Use of Technology (UTAUT). The study specifically examined the roles of perceived trust, performance expectancy, and effort expectancy as mediators in the relationships between perceived security, social influence, and attitude. The data was collected from 258 Gen-Z digital payment users in the northern part of India with the help of a well-structured survey questionnaire, using convenience and snowball sampling techniques. In addition, the data analysis was conducted using statistical tools such as SmartPLS 4.0 and SPSS. The results show that despite a non-significant negative influence of effort expectancy on attitude, the overall positive influence of attitude on the behavioural intention to use CBDC was established. The theoretical implications emphasize the contribution of this study to FinTech adoption literature, particularly in the context of CBDC among Gen-Z. Moreover, the study recommends refining theoretical frameworks to accommodate the evolving financial landscape. This study also suggests tailored strategies for policymakers, financial institutions, and businesses to align with Gen-Z’s preferences, fostering CBDC acceptance. A few limitations, including the focus on a specific age group and potential selection bias, should be considered when interpreting the results.