A model of trust in Central Bank Digital Currency (CBDC) in Brazil: how trust in a two-tier CBDC with both the central and retail banks involved changes consumer trust
A model of trust in Central Bank Digital Currency (CBDC) in Brazil: how trust in a two-tier CBDC with both the central and retail banks involved changes consumer trust
Central bank digital currencies (CBDC) have been implemented by some countries and trialled by many more. The consumer has an increasing range of financial services to choose from including decentralised blockchain-based cryptocurrencies. A CBDC may use blockchain technology, but it is centralized, so the institutions that support it play an important role. Despite the centralised top-down nature of this financial technology, it still needs to be adopted so the consumer’s perspective, particularly their trust in it, is very important. Each CBDC implementation can be different, and each country’s context can be different, therefore it is important to understand each case separately. This research models the Brazilian consumer’s trust in their two-tier CBDC, where the central bank and the retail banks retain their current role. The six ways to build trust in a CBDC, identified by previous research in a different region, are supported for this case also. These are: (a) Trust in government and central bank offering the CBDC, (b) expressed guarantees for those using it, (c) the favourable reputation of other active CBDCs, (d) the CBDC technology, the automation and limited human involvement necessary, (e) the trust building features of the retail bank’s CBDC wallet app, and (f) the privacy features of the retail bank’s CBDC wallet app and back-end processes.
CBDC, Brazil, Fintech, Banking, Central bank, Central Bank Digital Currency, Blockchain, Cryptocurrency, Latin America, Finance, information systems, Trust, trust and risk, trust and reputation management, consumer behaviour, Consumer Behavior
71-92
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Cheng, Xusen
f88a8aee-cd1d-46f7-8169-8448252003df
1 June 2025
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Cheng, Xusen
f88a8aee-cd1d-46f7-8169-8448252003df
Zarifis, Alex and Cheng, Xusen
(2025)
A model of trust in Central Bank Digital Currency (CBDC) in Brazil: how trust in a two-tier CBDC with both the central and retail banks involved changes consumer trust.
In,
Zarifis, Alex and Cheng, Xusen
(eds.)
Fintech and the Emerging Ecosystems: Exploring Centralised and Decentralised Financial Technologies.
(Financial Innovation and Technology)
1 ed.
Cham.
Springer Cham, .
(doi:10.1007/978-3-031-83402-8_4).
Record type:
Book Section
Abstract
Central bank digital currencies (CBDC) have been implemented by some countries and trialled by many more. The consumer has an increasing range of financial services to choose from including decentralised blockchain-based cryptocurrencies. A CBDC may use blockchain technology, but it is centralized, so the institutions that support it play an important role. Despite the centralised top-down nature of this financial technology, it still needs to be adopted so the consumer’s perspective, particularly their trust in it, is very important. Each CBDC implementation can be different, and each country’s context can be different, therefore it is important to understand each case separately. This research models the Brazilian consumer’s trust in their two-tier CBDC, where the central bank and the retail banks retain their current role. The six ways to build trust in a CBDC, identified by previous research in a different region, are supported for this case also. These are: (a) Trust in government and central bank offering the CBDC, (b) expressed guarantees for those using it, (c) the favourable reputation of other active CBDCs, (d) the CBDC technology, the automation and limited human involvement necessary, (e) the trust building features of the retail bank’s CBDC wallet app, and (f) the privacy features of the retail bank’s CBDC wallet app and back-end processes.
Text
978-3-031-83402-8_4
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More information
Published date: 1 June 2025
Keywords:
CBDC, Brazil, Fintech, Banking, Central bank, Central Bank Digital Currency, Blockchain, Cryptocurrency, Latin America, Finance, information systems, Trust, trust and risk, trust and reputation management, consumer behaviour, Consumer Behavior
Identifiers
Local EPrints ID: 503102
URI: http://eprints.soton.ac.uk/id/eprint/503102
ISSN: 2730-9681
PURE UUID: 376819b8-85d1-46de-a639-f202fd705674
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Date deposited: 21 Jul 2025 16:59
Last modified: 22 Aug 2025 02:43
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Contributors
Author:
Alex Zarifis
Author:
Xusen Cheng
Editor:
Alex Zarifis
Editor:
Xusen Cheng
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