Dynamics of Digital Currency Adoption in China: Exploring Technological, Policy, Economic, and Socio-Cultural Dimensions

Chenyu Luo; Ke  Nunthasen; Waraporn  Nunthasen; Nirote  Sinnarong

doi:10.60027/iarj.2025.286767

ผู้แต่ง

Chenyu Luo Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0005-3533-948X
Ke Nunthasen Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0001-0801-1201
Waraporn Nunthasen Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0009-0009-1302-6211
Nirote Sinnarong Faculty of Economics, Maejo University, Chiang Mai, Thailand https://orcid.org/0000-0002-5931-2696

DOI:

https://doi.org/10.60027/iarj.2025.286767

คำสำคัญ:

Digital Currency, DCEP, Blockchain, Financial Inclusion, Government Policies, China, Adoption Dynamics

บทคัดย่อ

Background and Aim: China’s Digital Currency Electronic Payment (DCEP) system represents a pioneering shift in global finance, positioning China at the forefront of Central Bank Digital Currency (CBDC) innovation. While existing literature explores various aspects of digital currency adoption, an integrative analysis of technological, policy, economic, and socio-cultural dimensions remains limited. This study seeks to bridge this research gap by examining the key determinants of DCEP adoption and its broader global implications. By incorporating insights from multiple disciplines, this research enhances understanding of adoption frameworks and strategic policy interventions.

Materials and Methods: This study employs a mixed-methods approach, combining primary and secondary data sources to analyze DCEP adoption dynamics. Primary data includes surveys (n=500 respondents) and semi-structured interviews with policymakers, financial institutions, and technology experts. Secondary data is drawn from government reports, central bank publications, financial institutions, and peer-reviewed academic literature. The quantitative component applies statistical modeling to measure transaction cost reduction, financial inclusion, and regulatory compliance, while the qualitative component explores policy initiatives, socio-cultural influences, and technological trust. This methodological design ensures analytical transparency and a comprehensive assessment of factors shaping digital currency adoption in China.

Results: With blockchain technology as its backbone, DCEP enhances transaction security, efficiency, and transparency, fostering positive user perceptions. However, challenges such as regulatory clarity, financial literacy, and consumer trust significantly impact adoption rates. Empirical findings reveal disparities in adoption levels across different demographic groups and industries, emphasizing the need for targeted interventions. The study identifies key socio-cultural factors, including trust in state-backed financial systems, digital literacy, and evolving consumer behaviors, as critical to DCEP adoption success.

Conclusion: The findings underscore the necessity of a comprehensive strategy that integrates technological innovations, regulatory reforms, and financial education to accelerate digital currency adoption. This study contributes to the broader discourse on financial technology by offering insights into policy frameworks, economic incentives, and consumer behavior. The research provides strategic recommendations for ensuring inclusive adoption while addressing privacy concerns, regulatory risks, and financial stability. As China advances its digital financial ecosystem, its experience offers valuable lessons for other nations exploring CBDCs. Future research should focus on longitudinal studies and comparative assessments to evaluate the long-term impact of digital currency adoption frameworks.

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