Untangling the complexities of central bank digital currency rejection amongst merchants : a qualitative comparative analytical approach

Abstract

This study draws on behavioural economic theories, particularly dispositional resistance to change and status quo bias, and extends them by incorporating the relatively overlooked concept of perceived economic risks of non-adoption. Drawing on this integrated framework, it empirically examines the configurations of antecedents that contribute to the rejection of central bank digital currencies (CBDCs). Using fuzzy-set qualitative comparative analysis (fsQCA), it is the first to examine early CBDC rejection with a specific focus on merchants in a pioneering CBDC country. The findings highlight five distinct conditions influencing CBDC rejection. Crucially, even when merchants perceive high economic risks from non-adoption and express dissatisfaction with existing fintech solutions, rejection persists if routine-seeking behaviours, emotional resistance to change, and a short-term focus are present. These results demonstrate that resistance to innovation often stems from entrenched behavioural and psychological factors, rather than purely rational considerations. By identifying the diverse pathways leading to CBDC rejection, this study offers policymakers critical insights into the complex interplay of resistance factors. It provides a foundation for designing targeted interventions aimed at mitigating merchant resistance and fostering broader adoption of digital currencies.