2. Content
- Introduction to the Digital National Currency
- Information on Scandinavian market and consumer
- Snapshot of Sweden and e-Krona
- Overview of other Global Efforts on Digital National Currency
- Current status in Turkey
- Review of Technology Acceptance in terms of Consumer Adoption
- Discussion of Future Research Orientations and Ideas
4. • Payment method
• only in electronic form
• not tangible
• can be used
• to purchase goods and services
• or restricted to certain online communities (e.g., gaming, social networks)
• can be transferred between
• entities
• users
• allows borderless transfer of ownership as well as instantaneous transactions
What is Digital Currency? also known as
digital money, cyber-cash, e-cash, cryptocurrency
5. CBDC
Central bank
digital currency
also called "Digital Fiat
Currency" or "digital
base money"
https://www.bis.org/cpmi/publ/d174.pdf
Bech, Morten L. and Garratt, Rodney, Central Bank Cryptocurrencies (September 17, 2017). BIS Quarterly Review September 2017
The money flower: a taxonomy of money
7. Coinisseur, Tommaso Mancini-Griffoli,
Deputy Division Chief
Monetary and Capital Markets Department
International Monetary Fund (IMF)
CBDC
• allows individuals to hold liability in a
central bank, instead of commercial
banks
• reduce costs and enable financial
inclusion, particularly in emerging
markets and lower-income countries
• help satisfy costs of maintaining a
payments system
• Currently, Uruguay, Sweden, China,
Ukraine and Eastern Carribean
Central Bank are the notable central
banks around the world, either
exploring or piloting a central bank
digital currency.
https://www.imf.org/en/Publications/Policy-Papers/Issues/2019/06/27/Fintech-The-Experience-So-Far-47056
https://businessblockchainhq.com/business-blockchain-news/imf-discusses-central-bank-digital-currency-developments/
Jun-Jul 2019
10. Cash withdrawals and cashless transaction per capita (2017)
https://www2.deloitte.com/content/dam/Deloitte/dk/Documents/financial-services/Downloads/Chasing_Cashless-The_rise_of_Mobile_Wallets_in_the_Nordics.pdf
15. Mobile in-store and domestic P2P-payments (2018)
https://www2.deloitte.com/content/dam/Deloitte/dk/Documents/financial-services/Downloads/Chasing_Cashless-The_rise_of_Mobile_Wallets_in_the_Nordics.pdf
21. Sweden
• Scandinavian country in northern Europe
• 3rd largest area in the European Union
• population of ~ 10M
• ~USD53k gross domestic product per capita
• 7th richest country in the world
• economy built on engineering, telecommunications,
automotive and pharmaceutical industries
• well developed IT-sector
• has almost as many tech startups as Silicon Valley
https://www.forbes.com/sites/alisoncoleman/2015/10/23/scandinavia-the-coolest-place-for-a-start-up/#28a86a9d32b1
https://www.euractiv.com/section/innovation-industry/news/nordic-countries-lead-eu-in-digital-entrepreneurship/
https://data.worldbank.org/country/sweden
Government goal (2011): “Sweden should become the best in the world
exploiting the opportunities of digitisation”
22. to replace their credit card information, identification, keys, train tickets, among other
everyday items
https://www.zerohedge.com/news/2018-05-18/biohack-thousands-sweden-have-implanted-microchips-under-their-skin
https://nypost.com/2019/07/14/swedish-people-are-getting-chip-implants-to-replace-cash-credit-cards/
Ready to embrace technological novelties
23. Mobile payment services
Dec 12, 2012 midnight: launch of mobile payment Swish (by six banks)
• disruptive innovation in the mobile payment service industry
• succeeded in creating an interoperable service for the Swedish market
• substitute to cash for person-to-person payments
www.getswish.se
https://medium.com/@etiennebr/swish-the-secret-swedish-fintech-payment-company-created-by-nordic-banks-and-used-by-50-of-swedes-cfcf06f59d6f
24. Does Digital Currencies (e.g., Bitcoin) meet
Critical Demands on Payments?
https://www.slideshare.net/AsianProductivityOrganization/future-cashless-society
27. • ensure that the Swedish public has
access to central bank money
• provide a payment infrastructure and
may increase payment system
resilience
• provide a means of payment primarily
between households and firms, it
would be accessible 24/7 and process
payments in real time
https://www.suerf.org/docx/r_ffd2257b586a72d1fa75f4ba2ad914e6_5175_suerf.pdf
retail payments and cashless society
use of paper cash is quickly dwindling
à the general public would no longer
have access to central bank money
retail payments developments
à no longer have a domestic
infrastructure for retail payments, given
the dominance of global card schemes,
pan-European clearing and the ECB’s
trend towards multi-currency settlement
systems
e-krona
33. 2017 à instituted a sweeping ban on cryptocurrency activities,
including trading, wallets, and ICOs (initial coin offering).
Recently à authorities have spoken out about accelerating the
development of a central bank digital currency (CBDC).
https://technode.com/2019/07/23/china-fast-tracks-development-of-national-digital-currency-in-response-to-libra/
People's Republic of China
34. 2014 à all trades using virtual currencies and all benefits from selling them
is allowed only for registered financial organizations (e.g., banks)
2017 à Ukrainian National Bank required certain regulation to admit Bitcoin
as real money
2018 à almost finished legislation aimed at regulating all operations with
digital assets
Recently à Ukrainian National Bank expressed readiness to collaborate with the
Bitcoin foundation to work on the new project called Ukrainian Bitlicense
Ukraine
https://cointelegraph.com/tags/ukraine
36. “A decline in cash usage has prompted us to
think about whether at some future date a
number of new attributes that are important for
ensuring an efficient and robust payment system
and confidence in the monetary system will be
needed”
https://members.nfcworld.com/25796/norges-bank-papers-central-bank-
digital-currencies/
https://www.reuters.com/article/us-israel-cenbank-currency/israel-central-
bank-mulls-issuing-digital-currency-for-faster-payments-idUSKBN1EI0D5
https://news.bitcoin.com/uruguay-first-in-the-world-to-launch-digital-currency-
not-bitcoin-it-stresses/
41. 11th Development Plan – Turkey (2019-2023)
http://www.sbb.gov.tr/wp-content/uploads/2019/07/OnbirinciKalkinmaPlani.pdf
09 Jul 2019
* available only in Turkish
43. Have you ever heard of
cryptocurrency?
https://think.ing.com/reports/cracking-the-code-on-cryptocurrency/
44. Do you own some
cryptocurrency?
https://think.ing.com/reports/cracking-the-code-on-cryptocurrency/
Do you expect to own
cryptocurrency in the future?
45. eGovernment performance of Life Events - Turkey (2013)
http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?action=display&doc_id=5573
47. Kobrin, S. (1997). Electronic Cash and the End of National Markets. Foreign Policy, (107), 65-77. doi:10.2307/1149333
”E-cash and the increasing importance of digital markets pose
problems for central government control over the economy and
the behavior of economic actors; they also render borders
around national markets and nation-states increasingly
penneable--or, perhaps, increasingly irrelevant. In a world
where true e-cash is an everyday reality, the basic role of
government in a liberal market economy and the
relevance of borders and geography will be drastically
redefined.”
(Kobrin, 1997)
48. Introduction to technology acceptance model (TAM)
PEU : the degree to which a person believes that using the system will be free of
effort
PU : the extent to which a person believes that using a particular technology will
enhance her/his job performance
Davis, F. D. (1986). A technology acceptance model for empirically testing new end-user information systems: Theory and results. Cambridge, MA: Massachusetts Institute of Technology.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13, 319–340. doi:10.2307/249008
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982–1003.
doi:10.1287/mnsc.35.8.982
Perceived
Usefulness
Perceived
Ease of Use
External
Variables
Attitude
Toward Using
Behavioral
Intention to Use
Actual System
Use
49. Technology acceptance model (TAM) and electronic commerce
Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of
Electronic Commerce, 7(3), 101–134.
Actual
Transaction
Intention to
Transaction
Trust
Perceived
Usefulness
Perceived
Risk
Perceived
Ease of Use
50. What are the
• perceived ease of use,
• perceived usefulness, and
• perceived risk factors for
• Consumers
• Firms
• Banks
• Regulators
with regard to national digital currency in Sweden and
Turkey?
TAM Questions
Daniel Folkinshteyn & Mark Lennon (2016) Braving Bitcoin: A technology acceptance model (TAM) analysis, Journal of Information Technology Case and Application Research, 18:4, 220-
249, DOI: 10.1080/15228053.2016.1275242
51. ”The elderly and those who
struggle with technology are at
risk of being left behind just
as people who can’t afford smart
phones or those who don’t have
credit or debit cards.”
https://dailysweden.com/2019/07/29/sweden-set-to-be-worlds-first-cashless-society-australia-is-following/
What about immigrants / disabled /elderly / unbanked
???
52. Effects of existing
• Internet and communications infrastructure
• level of digital adoption: use of Internet
• use of cash
• access points to the financial system
• technologically neutral and secure methods of
payment
What about …
https://www.bbvaresearch.com/wp-content/uploads/2018/10/CBDCs-in-LATAM.pdf