Abstract

The rapid evolution of digital currencies particularly the introduction of Central Bank Digital Currencies (CBDCs) has transformed the global financial landscape. This study explores the rise of CBDCs in various economies including China’s Digital Yuan India’s Digital Rupee and pilot projects in Europe and the United States. The research examines the economic security and regulatory challenges associated with the adoption of digital currencies. It also contrasts CBDCs with cryptocurrencies like Bitcoin and Ethereum highlighting the advantages of government-backed digital assets in ensuring financial stability reducing transaction costs and increasing monetary transparency. The study further investigates concerns such as cybersecurity risks privacy issues and cross-border payment challenges. Using financial reports policy papers and expert interviews this paper provides insights into the future trajectory of digital currencies and their potential impact on traditional banking systems.