CENTRAL BANKING IN POST-CONFLICT ECONOMIES: ANALYZING THE DUAL ROLE IN PAYMENT SYSTEMS AND FINANCIAL EDUCATION

Abstract

This paper examines the critical role of a central bank in enhancing confidence and the adoption of digital finance within a post-conflict economy. Focusing on the Central Bank of Kosovo (CBK), this study explores its dual mandate of overseeing the national payment system and promoting financial literacy. Utilizing a mixed-methods approach that combines the analysis of institutional documents (covering the period 2018–2024) with a survey of 280 users (conducted between March and June 2024), the research identifies a strong positive correlation between users’ perceived security and the CBK’s regulatory actions. Financial education initiatives are also found to be essential in fostering trust in digital services. Collectively, trust and security emerge as significant determinants of digital payment adoption. The findings align with the unified theory of acceptance and use of technology 2 (UTAUT2) (Venkatesh et al., 2003) and institutional trust theory (Mishler & Rose, 2001), confirming their relevance in post-conflict contexts. The study concludes by proposing policy recommendations for more adaptive regulation, the integration of financial literacy into national education curricula, and the strengthening of multi-sector partnerships to build a more inclusive and resilient digital financial ecosystem.