The Influence of Institutional Trust on the Adoption of the Digital Euro

Abstract

As the digital euro advances through its preparatory phase, the success of this novel means of payment hinges on the attitude of end-users towards its adoption and related trust-building mechanisms. Yet, research is scarce on trust in the context of central bank digital currencies (CBDCs) from an end-user’s perspective. Drawing on institutional trust theory, this work investigates the influence of structural assurances – policy and technology assurance – on individuals’ willingness to adopt a digital euro. A survey conducted among 421 participants from France, Germany, and Italy highlights the central role of institutional trust as a key component of trust in the digital euro system, influencing end-users’ attitudes toward its adoption. The empirical findings contribute to the evolving literature on retail CBDCs through the end-user’s lens and offer practical guidance for central banks and policymakers regarding the key role of both policy and technology assurance.