Digital currencies are transforming the global financial landscape, with Central Bank Digital Currencies (CBDCs) emerging as a key focus of monetary policy innovation. As cryptocurrencies like Bitcoin and Ethereum gain prominence, governments and central banks are exploring CBDCs as a way to modernise their financial systems, enhance security, and maintain control over monetary policy in an increasingly digital world. CBDCs are digital forms of a country national currency, issued and regulated by the central bank. Unlike decentralized cryptocurrencies, which operate independently of governments, CBDCs are backed by state authority and designed to function within the existing financial framework. The growing interest in CBDCs is driven by several factors, including the rise of cashless payments, financial inclusion, and concerns over the volatility of private cryptocurrencies. Countries around the world are at various stages of exploring and implementing CBDCs. China is a frontrunner, with its digital yuan (e-CNY) already being tested in several cities. China push for a CBDC aims to reduce its reliance on physical cash, streamline payments, and maintain control over its financial system amid the growing popularity of private digital currencies. Other nations like Sweden have also made significant strides in developing CBDCs. The Swedish Riksbank is testing the e-krona, driven by the country move towards a largely cashless society. Meanwhile, the European Central Bank (ECB) is considering the introduction of a digital euro to complement cash and strengthen the eurozone payment infrastructure. In the United States, the Federal Reserve is exploring the possibility of a digital dollar, though it has adopted a more cautious approach. The potential benefits of a CBDC in the U.S. include improving financial inclusion by providing access to banking services for unbanked and underbanked populations, increasing the efficiency of domestic and cross-border payments, and enhancing the ability to combat financial crimes.