Blockchain investment decision making in central banks: A status quo bias theory perspective
Distributed Ledger Technology (DLT), a type of blockchain, refers to a decentralized peer-to-peer network-based transaction ledgers for greater transparency without arbitrating and monitoring central authority. DLT can transform financial markets and payments industries through technology innovation and digital transformation of extant governance structures and processes for transferring digital assets, including bitcoin, in real-time to enable faster efficient payments, clearing, and settlement. While the IS adoption/investment research studied different types of enterprise information systems from the status quo bias theory perspectives, it has not studied DLT investment decisions in government. This research draws on the status quo bias theory to investigate DLT investment decisions to explore the feasibility of DLT in central banking. We found evidence of different types of status quo bias in affecting two of the most influential central banks’ DLT investment decision-making. We explicate their decision characteristics that may explain the observed different types of status quo bias.