A Study on the Awareness of Central Bank Digital Currency (CBDC) Issued by RBI

Abstract

This study investigates the awareness and perception of the Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI) among residents of Bengaluru City. The rapid evolution of digital payment systems and the increasing interest in CBDCs globally prompted this research. The primary aim is to assess the level of awareness, understanding, sources from which they get awareness about CBDC or factors contributing their lack in the awareness about CBDC and acceptance of CBDCs among the urban population, considering various demographic factors. A structured questionnaire was designed and distributed among a diverse sample of Bengaluru residents to collect primary data. The questionnaire covered areas such as general awareness of digital currencies, specific knowledge about RBI's CBDC initiatives. Descriptive statistics were used to summarize the demographic data and the general awareness levels. Statistical tests such as Mann-Whitney U test was employed to check if there was any difference between the overall awareness level about CBDC between male and female in Urban Bengaluru. Kruskal-Wallis test was conducted to check if there is any significant difference between the sources from which individual obtain information about CBDC and the level of awareness and to check if there is any difference between factors contributing to the lack of awareness about CBDC and their level of awareness. The study concludes that there is a need for increased public education and transparent communication from the RBI to enhance the understanding and acceptance of CBDCs. The insights gained from this research could inform policymakers and financial institutions in designing effective strategies for CBDC implementation and adoption.