The Central Bank Digital Currency: Integrated Model in Banking System

Abstract

This study aims to propose a model for the integration of Central Bank Digital Currency into the banking system, as well as to explore the possibility of adopting this system in Indonesian society. The Partial Least Square Structural Equation Model (PLS SEM) was used based on the Unified Theory of Acceptance and Use of Technology (UTAUT), with moderating variables of age, gender, education, and experience of digital transactions using electronic money, mobile banking, and internet banking. The sample was selected based on the simple random sampling method of 300 respondents, consisting of various generations, education levels, and experiences with digital electronic money transactions. The results of the study concluded that the expectation of ease of transaction, service facilities, and behaviour towards technology influence willingness to adopt Central Bank Digital Currency. Age, gender, and experience in transacting using electronic money were found to be the most influential factors. The millennial generation is more adaptive to the implementation of Central Bank Digital Currency than Baby Boomers or Generation X. Men are also more adaptive to the use of new Central Bank Digital Currency technology, and the experience of transacting with electronic money has a significant effect on Central Bank Digital Currency adoption in Indonesian society.