Abstract
In the past few years, central banks have swiftly stepped up their research and development activities on central bank digital currencies. A rising body of economic research that frequently highlights the "reserves for all" characteristic of CBDCs for retail use supports these initiatives. However, CBDCs must be considered in the full context of the digital economy and the value of data, which raises concerns about personal data protection, payment system security, and competitiveness. This study offers a tour of the growing body of research on CBDCs, emphasizing the macroeconomic effects on the financial system, financial stability, and monetary policy as well as the microeconomic worries about operational designs, technology, and privacy.
References
With digital financial transactions, CBDC is projected to soon bring about a pragmatic transformation in the economy. The total monetary infrastructure will be enhanced and made more efficient with the implementation of the currency system. Along with convenience, it will advance the government's goal of moving quickly toward a digital economy. However, we must wait and see if CBDC can create an ecosystem for quicker real-time remittances around the world. The moment is right for CBDCs as a concept.