CBDC–as-a-problem looks like a mania of interest from central banks and financial institutions all over the world. It may describe CBDC technology and CBDC technology development, the positive aspects of CBDC and its future perspectives as follows: The CBDC is linked to the existing banking systems in the past which was based on the past findings of the blockchain, DLT, etc., that possessed the qualities the previous ones did not have – security, trust, and transparency. Innovation, design and CBDC safety that falls below this paper are discussed in this section below. The paper proceeds to show several paths that central banks are taking to CBDC development given the regulation and changing dynamic of the financial world. However, the studies do not end there; information on the potential of CBDC for financial stability, monetary policy formulation trajectories, transaction privacy, and the role of banks is included. Given that in field of finance the CBDCs are becoming more and more important, this research paper shall ensure to provide consistent background to policymakers, financial institutions and society at large on CBDC and its structural implications. This guarantees that everyone is in the know so it will be possible for them to come up with compliant plans and decisions informed by the knowledge in this changing landscape that simply does not stop evolving.
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Mehra et al. (2024) studied this question.
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