PUBLIC ACCEPTANCE OF CENTRAL BANK DIGITAL CURRENCIES: EVIDENCE FROM MALAYSIA

Abstract

The rapid advancement of digital financial technologies has stimulated global interest in the development of Central Bank Digital Currencies (CBDCs). As a sovereign-backed digital form of money, CBDC has the potential to reshape payment systems, enhance financial inclusion, and improve transaction efficiency. Despite increasing experimentation by central banks worldwide, public acceptance remains a critical determinant of successful implementation. This study investigates the factors influencing public acceptance of CBDC in Malaysia by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) with additional constructs, namely perceived trust, perceived risk, and perceived privacy. A quantitative research design was adopted, and data were collected through a self-administered online questionnaire targeting Malaysian adults. The proposed research model was tested using partial least squares structural equation modeling (PLS-SEM). The findings indicate that performance expectancy and perceived trust are the most significant predictors of CBDC acceptance, while effort expectancy, social influence, facilitating conditions, perceived risk, and perceived privacy do not exhibit significant effects. The results offer important insights for policymakers, central banks, and financial institutions in designing CBDC systems that align with public expectations and trust requirements.