Barriers to Adoption of Digital Currency: Interpreting Structure Modelling (ISM) Approach Towards Using of Central Bank Digital Currency (CBDC)

Abstract

This study looks at key elements that influence the use of digital currency. Globally, central banks have launched digital currencies, but they are still not fully functional in many regions as well as within countries. This study investigates the best way to execute this from the top down. This research selected five factors, that is, security and trust, technology, customer satisfaction, financial and organizational and regulatory framework, along with 16 sub-criteria. The interpreting structure modelling (ISM) technique is used to rank and determine levels. This study proposed a structure of variables into four levels. Organizational commitment is the most crucial component, followed by data security, virtual service quality, user-friendliness and perceived value. The research suggested that cost-effective transactions, user-friendly technologies and transaction and information security all contribute to increased trust in the central bank digital currency (CBDC) application. CBDC adoption will result from this, supporting both environmental sustainability and sustainable economic growth. The study provides valuable insight for professionals, banking institutions, policymakers and scholars.