Acceptance of Central Bank Digital Currency in Pakistan in a Modified UTAUT2 Framework

This study investigates the factors influencing consumer acceptance of Central Bank Digital Currency (CBDC) in Pakistan by extending the Unified Theory of Acceptance and Use of Technology (UTAUT2) model. This study integrates Perceived Trust (T) as moderator and Shariah Compliance (SC) and Perceived Credibility (PC) as mediator to fit the model according to unique religious and socioeconomic context of Pakistan. After collecting data from 332 respondents were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The result of the study indicates that Use of CBDC is most affected by Performance Expectancy (PE), Effort Expectancy (EE) and Facilitating Conditions (FC). The study also confirms the moderating role of Perceived Trust on CBDC and mediating role of PC and Behavior intention (BI) to Use CBDC. Notably SC was not found to be a significant mediator, suggesting it may serve as an underlying contextual factor rather than a direct driver of adoption. In conclusion, this research extends the UTAUT2 framework by providing empirical evidence for the factors influencing CBDC acceptance in Pakistan, emphasizing the critical roles of PE, EE, BI, and PC. These findings offer valuable insights for State Bank of Pakistan aiming to promote the successful adoption of CBDCs in the country.