Central Bank Digital Currency: Factors Affecting Intention to Use and Mediating Role of Trust

A digital version of central bank currency is called Central Bank Digital Currency (CBDC)..In this digital era, CBDC has acquired more interest among many developing countries.Bank Negara Malaysia (BNM) is discovering the implementation of CBDC.In Malaysia participant awareness of digital currencies is still in its immaturity.This study contributes by identifying the primary customer-related drivers of CBDC adoption and how they interact to affect users' attitudes towards this currency.The main objective of this study is to identify the significant factors influencing the intention to use Central Bank Digital Currency (CBDC) in Malaysia and investigate the mediating role of Trust in the adoption of CBDC.The conceptual model of the study is developed based on TAM model.The study uses quantitative approach, non-random sampling technique, convenient sampling method is used to collect data.A sample of 370 responses were obtained from Malaysian adults and analysed using Structural equation modelling.The findings reveal that awareness and perceived value significantly influences intention to use CBDC while financial knowledge does not have a significant effect.However, trust mediates the relationship between awareness, financial knowledge, perceived value and intention to use CBDC.The study demonstrates the policymakers' knowledge of the key variables they should pay attention to when creating and implementing CBDCs and give them useful advice to act on these customer-specific variables.