• Anil Niroula

Central banks across the globe are exploring the potential implementation of Central Bank Digital Currencies (CBDCs). In this context, this study aspires to evaluate the effect of information treatment to improve consumers’ perspective on CBDC and the Central bank’s credibility. The study also aims to explore consumers’ potential incentives for CBDC adoption and further investigate if financial literacy is associated with CBDC adoption and central bank credibility. The study was conducted in Bloomington, Indiana, as a pilot study in 2023 by employing randomized controlled trial (RCT) and linear regression to analyze the outcomes. The study found that information intervention increased central banks’ credibility and CBDC adoption in the treatment group. Our results indicate that potential incentives of CBDCs, such as interest rate advantage, transaction convenience, and security features can boost the adoption of CBDC. Furthermore, the study found that the central bank’s communication among higher financially literate participants generates more credibility gains and CBDC adoption compared to lower levels of financial literacy.

Central Bank Digital Currency, CBDC Adoption, financial literacy, randomized control trial, Central Bank credibility.

"Central Bank Credibility, Central Bank Digital Currency Adoption, and Financial Literacy: A Pilot Randomized Controlled Trial", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 3, page no.d32-d43, March-2024, Available :http://www.jetir.org/papers/JETIR2403305.pdf

"Central Bank Credibility, Central Bank Digital Currency Adoption, and Financial Literacy: A Pilot Randomized Controlled Trial", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 3, page no. ppd32-d43, March-2024, Available at : http://www.jetir.org/papers/JETIR2403305.pdf