Digital Turkish Lira: Factors Influencing Public Acceptance and Usage Intention

What is it about?

This text discusses the Digital Turkish Lira (DTL) and factors affecting its acceptance and intention to use. It explores blockchain technology, digital currencies, and their adoption by central banks, including Turkey. The study uses structural equation modeling based on the Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) to analyze user acceptance. The research found that TPB variables positively affect intention to use, while TAM variables impact intention through ease of use. Users view DTL as more reliable than cryptocurrencies, likely due to its connection with the Central Bank of Turkey. The text also covers the decline in cash usage, the digitalization of financial services, and the theoretical background of technology acceptance models.

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Photo by Immo Wegmann on Unsplash

Photo by Immo Wegmann on Unsplash

Why is it important?

This research is significant because it examines the factors affecting the acceptance and intention to use the Digital Turkish Lira (DTL), a new digital currency initiative by Turkey's central bank. As countries worldwide explore central bank digital currencies (CBDCs), understanding user acceptance is crucial for successful implementation. This study provides insights into the factors influencing DTL adoption, which can inform policymakers and financial institutions in Turkey and other countries considering similar digital currency projects. The research also contributes to the broader understanding of how emerging financial technologies are perceived and adopted by users in an increasingly digital economy. Key Takeaways: 1. Theoretical Framework: The study utilizes a combination of the Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) to analyze factors affecting DTL acceptance, providing a comprehensive approach to understanding user intentions in adopting new financial technologies. 2. Trust in Central Bank: The research indicates that users find DTL more reliable than cryptocurrencies, likely due to its association with the Central Bank of the Republic of Turkey. This highlights the importance of institutional backing in fostering trust in digital currencies. 3. Digitalization Trends: The study acknowledges the global trend towards digitalization of financial services, including the decline of cash usage in countries like Sweden, emphasizing the timeliness and relevance of research into central bank digital currencies like the DTL.