Research on the Using Behavior of Small Denomination Money in the Digital Age

The purpose of this paper is to explore the influence of central bank digital currency, digital payment, traditional culture, and personal factors on the user behavior of small denomination money through literature review and research results, further analyze the reasons for the use of small denomination money, give relevant suggestions, and predict the use of small denomination money in the future. Using multiple regression model and ANOVA analysis, this paper finds that the user behavior of small denomination currency has a significant positive correlation with the disadvantage cognition of digital currency, the disadvantage cognition of digital payment, and traditional culture identification. Personal factors also affect the user behavior and influencing factors of small denomination currency. Gender has a significant impact on the last time small denomination currency was used, the advantage cognition of digital payment and the disadvantage cognition of digital payment. Age has a significant impact on small denomination money, the last time when small denomination currency was used, and the influencing factors. Education level and income level have no significant impact on the user behavior and its influencing factors of small denomination money. This paper argues that although the using behavior of small denomination money is affected by the central bank's digital money and digital payment channels, it is difficult to change for a long time due to the characteristics of the user behavior itself. Therefore, the probability of a significant decline in the using rate of small denomination money is small.