Analysis Of The Influence Of Macroeconomic Factors And Payment Infrastructure On The Use Of Electronic Money In Indonesia: Implications For CBDC Adoption

Abstract

This study explores how macroeconomic factors and payment infrastructure affect Indonesian electronic money use, giving insights for Central Bank Digital Currency adoption. The rapid growth of financial technology and the global shift toward Central Bank Digital Currencies inspired this study to address a gap in empirical quantitative analysis. The interrelationships are examined using an Error Correction Model (ECM) using time series data from January 2014 to December 2024. In both the short and long run, the BI Rate, money supply (M2), EDC devices, and ATM/debit cards all have a statistically significant and beneficial effect on electronic money transactions. Despite rising interest rates, consumers see electronic money as a viable alternative, and a good payment infrastructure helps promote its use. Inflation hurts electronic money transactions, therefore price stability is crucial for digital currency. The research shows that macroeconomic policies and infrastructural development are necessary for CBDC implementation, which is important for Indonesian monetary authorities. The models explain most of the diversity in electronic money transactions, highlighting these elements' cumulative effect.