Awareness and Adoption of Central Bank Digital Currency: A Study on Public Perception in Chennai

Abstract

Central Bank Digital Currency (CBDC) is an emerging financial innovation that has garnered significant attention from policymakers, economists, and the public alike (Raphael, Jon, & Leonardo, 2021)[15]. This research paper aims to explore the awareness and preference of individuals of general public in adopting CBDC across Chennai region. As the global financial landscape continues to evolve, understanding the awareness and preference for CBDC becomes increasingly critical in shaping the future of digital currencies and their role in modern economies.

This study employs a combination of quantitative research methods, such as surveys, alongside secondary data analysis in application with SPSS and AMOS Software. Surveys were administered to a diverse sample of 283 respondents including students, staff and employees across Chennai. The survey assessed their knowledge about CBDC, concerns related to its adoption, and perceived advantages over traditional currencies and payment systems. The results from this study provide valuable insights for policymakers and central banks to design effective strategies for the implementation and adoption of CBDC while considering the potential benefits and challenges associated with this transformative financial technology.