The effect of warnings on consumer attitudes towards cryptocurrency and central bank digital currency: A survey experiment

Last registered on October 09, 2020

Pre-Trial

General Information

Title

RCT ID

AEARCTR-0006573

Initial registration date

October 08, 2020

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

October 09, 2020, 9:02 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country

Germany

Region

Country

France

Region

Country

United Kingdom of Great Britain and Northern Ireland

Region

Country

Italy

Region

Primary Investigator

Name

Axel Ebers

Affiliation

Leibniz University Hannover

Contact Primary Investigator

Other Primary Investigator(s)

PI Name

Stephan Thomsen

PI Affiliation

Leibniz University Hannover

Contact Investigator

Additional Trial Information

Status

In development

Start date

2020-10-09

End date

2020-10-23

Keywords

Behavior, Finance & Microfinance

Additional Keywords

Cryptocurrency, bitcoin, central bank digital currency, attitudes, survey experiment, financial literacy

JEL code(s)

G11, G23, G28, G41, G53

Secondary IDs

Abstract

The use of cryptocurrencies involves specific risks including high volatility, cybertheft, and lack of regulation. Considering their potential to destabilize the financial system, authorities have an interest in efficient regulation of cryptocurrencies. Official warnings form the lowest threshold in the spectrum of possible regulatory procedures. At the same time, central banks around the world consider the issuance of their own cryptocurrencies – called central bank digital currency (CBDC) – which may combine the advantages of blockchain technology and legal tender. The success of any currency strongly depends on the adoption by consumers. Using a survey experiment, we investigate the impact of official warnings on the attitudes towards Bitcoin, the world’s leading cryptocurrency, and central bank digital money.

External Link(s)

Registration Citation

Citation

Ebers, Axel and Stephan Thomsen. 2020. "The effect of warnings on consumer attitudes towards cryptocurrency and central bank digital currency: A survey experiment." AEA RCT Registry. October 09. https://doi.org/10.1257/rct.6573-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

We test the impact of four different information treatments, which differ in the elaboration of the official warning. The first warning points to the lack of regulation, the second to the environmental costs, and the third to the lack of anonymity. The fourth treatment arm does not contain a warning but a remark on the increasing acceptance of digital payment and cryptocurrency in the wake of the covid-19 pandemic.

Intervention Start Date

2020-10-09

Intervention End Date

2020-10-23

Primary Outcomes

Primary Outcomes (end points)

Attitude towards buying Bitcoin, intention/ willingness to buy Bitcoin, attitude towards buying CBDC, intention/ willingness to buy CBDC

Primary Outcomes (explanation)

To assess the effectiveness of official warnings, we select outcome variables that indicate the demand of Bitcoin or CBDC. We therefore use the individual attitudes towards buying Bitcoin or CBDC as well as the intention to buy as our primary outcomes.

Secondary Outcomes

Secondary Outcomes (end points)

Secondary Outcomes (explanation)

Experimental Design

Experimental Design:
We conduct a randomized controlled trial (RCT) by randomly assigning the participants into 4 treatment groups and one control group. The treatment groups each receive one of the four information treatments. The control group receives no treatment.

Data Collection:
We conduct survey experiments in Germany, the United Kingdom, France, and Italy. In each of these countries, we draw a random sample of 500 observations from a pool of individuals that is representative of the working population. We randomly assign the observation units into the five groups as described above resulting in 100 observations in each treatment arm. Data collection takes place via online survey. In total, we draw a random sample of 2,000 observations with 400 being allocated to each of the treatment arms.

Experimental Design Details

Randomization Method

Randomization done in office by a computer

Randomization Unit

Individual

Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters

2,000 individuals

Sample size: planned number of observations

2,000 individuals

Sample size (or number of clusters) by treatment arms

400 individuals in treatment group 1, 400 individuals in treatment group 2, 400 individuals in treatment group 3, 400 individuals in treatment group 4, and 400 individuals in control group

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Supporting Documents and Materials

IRB