Awareness and Acceptance of Central Bank Digital Currency Among Retail Users: An Empirical Study from Ahmedabad, India

Abstract

Central Bank Digital Currencies (CBDCs) represent a revolutionary development in monetary systems, with India's Digital Rupee pilot program marking a significant milestone in financial innovation. This empirical study examines CBDC awareness and acceptance patterns among retail users in Ahmedabad, employing an integrated theoretical framework combining the Technology Acceptance Model, UTAUT2, trust theory, and financial inclusion perspectives. Through a comprehensive survey of 725 participants, this research reveals that CBDC awareness in Ahmedabad stands at 52.4%, exceeding the national average of 46.3%. However, only 34.7% demonstrate comprehensive understanding of CBDC benefits and functionalities. Statistical analysis confirms that perceived usefulness (β = 0.387, p < 0.001) emerges as the strongest predictor of behavioral intention, followed by trust and security perceptions (β = 0.198, p < 0.001), and perceived ease of use (β = 0.234, p < 0.001). The study identifies significant demographic variations, with younger, more educated, and higher-income groups showing greater adoption readiness. Institutional trust in the Reserve Bank of India remains remarkably high at 89.3%, providing a solid foundation for CBDC implementation. These findings contribute to the growing literature on digital currency adoption while offering actionable insights for policymakers, financial institutions, and technology providers seeking to enhance CBDC acceptance in emerging economies.