# Understanding Consumer Acceptance for Blockchain-Based Digital Payment Systems in Bhutan
## 1 Introduction  
The blockchain has become a cornerstone of the digital innovation revolution [1, 2], transcending its original purpose. As a distributed and decentralized ledger, blockchain ensures that transactions remain immutable, transparent, and secure across multiple nodes [3, 4, 5]. These capabilities make it beneficial in applications that require the accuracy and security of data like financial, supply chain, and digital identity verification [6, 7]. For digital payments, blockchain is going to revolutionize the industry [8, 9], as it will eliminate redundancies, reduce transaction fees, and enable payments to be more secure than they are in existing systems [10, 11]. Many nations are looking at integrating blockchain into their digital payment ecosystems in order to take advantage of these features [12, 13, 14, 15]. While blockchain has broad applications, its impact on the banking sector is highly significant. Banks can benefit from private blockchain platforms such as Hyperledger Fabric, R3 Corda, and Quorum because they deliver secure and efficient solutions that meet regulatory requirements [16, 17]. The system enables controlled access paired with real-time settlements, automated payments, and cost reductions, along with financial data protection. Private blockchains improve financial accessibility by facilitating smoother cross-border transactions with fewer intermediaries involved [18]. Bhutan can achievesecure digital payment scalability through permissioned blockchain networks that also maintain regulatory compliance. Modern economies require digital payments because of their unmatched ease, financial inclusion, and simplicity [19; 20]. The speed of contactless payments paved the way for digital payments and, during the COVID-19 crisis, proved both adaptable and durable [21; 22; 23]. In the context of Bhutan, where digital payment adoption is growing, blockchain can serve as a key enabler of financial transformation. The Royal Monetary Authority (RMA), the central bank, is leading efforts to digitalize banking services to enhance financial inclusion and digital literacy [24]. The nation's digital payment network includes mobile wallets, Internet banking, and QR-code payments, which are gaining popularity. However, digital literacy and data security concerns could hinder mass adoption [25]. Blockchain implementation within Bhutan's digital payments infrastructure can solve these challenges. The blockchain can also be the tool to enable Bhutan's digital transformation and economic growth by facilitating a safer, faster and more inclusive payment mechanism. Several factors will influence consumers' acceptance of blockchain-based digital payment systems [26; 27] in Bhutan, such as sophisticated socioeconomic and infrastructure challenges that define blockchain in countries [28; 29]. A lack of access to high-level infrastructure [30], digital literacy differences [31] and a shift in regulatory expectations [32] can be consumers' catalysts for acceptance. Consumer acceptance is the key to the successful adoption of blockchain in digital payment infrastructures [33; 34; 35], as it directly determines whether users are going to embrace and use these new innovations [11; 36] in their daily financial transactions. Acceptance depends not just on the fundamental technical advantages of blockchain such as security, transparency and decentralization but also on how potential users perceive its advantages and practicalities within their socio-economic and cultural environment [37; 38]. Consumer acceptance depends on a number of factors, but benefits are by far the most important [39; 40]. Most people will embrace blockchain technology if they are convinced it will make their financial lives easier, cheaper, and more secure [41]. Similarly, ease of use, or the ease with which the system can be used [42; 43], is critical in establishing consumer acceptance and eliminating barriers to adoption [44; 45; 46].