Author: Duk Gyoo Kim(Yonsei Univ.), Ohik Kwon(Korea Univ.), Seungduck Lee(Sungkyunkwan Univ.)

<Abstract>

This study investigates the public demand for retail Central Bank Digital Currency (CBDC) and its implications for financial intermediation by focusing on its potential substitution effects on existing digital payment methods and viability as a store of value. Using an information-provision survey experiment, we analyze public responses to technically various CBDC issuance types, including online and offline applications and a physical card type, with and without interest payments. The survey experiment finds that, while CBDC design features do not significantly influence its demand as a payment method, offering positive interest payments can enhance its appeal as a store of value. Moreover, it indicates that payment practices and trust in central banks would have a greater impact on demand for CBDC than its technical design features.