| The advent of computers and telecommunications technology in the latter half of the 20th century paved the way for electronic money, also known as digital cash. This transition enabled the storage, transfer, and exchange of monetary value electronically. Payment cards, online money transfers, and platforms like PayPal exemplify the shift towards electronic money. In 2009, Bitcoin, the first decentralized digital currency, emerged, introducing blockchain technology—a decentralized and transparent ledger that records all transactions. Bitcoin's success paved the way for numerous other cryptocurrencies like Ethereum, Ripple, and Litecoin, aiming to address limitations and offer additional features. Blockchain technology transcended the realm of digital currencies and found broader applications in sectors such as supply chain management, healthcare, finance, and voting systems. Its versatility demonstrated the potential to revolutionize traditional industries, enhancing transparency, security, and efficiency. Stablecoins are a type of digital currency designed to minimize price volatility by pegging their value to a stable asset, such as a fiat currency or commodity. They offer the advantages of cryptocurrencies, like fast transactions and borderless transfers, while addressing the issue of price fluctuations that often deter mainstream adoption. Decentralized Finance (DeFi) refers to the development of financial applications using blockchain and cryptocurrency technology, without the need for intermediaries like banks. It offers decentralized alternatives to traditional financial services, including lending, borrowing, trading, and asset management. DeFi has gained significant traction and demonstrated the potential to disrupt the traditional financial system.
The present research paper focus on the concept of Central Bank Digital Currency (CBDC’s) due to the popularity gained by digital currencies. CBDC’s are digital representations of fiat currencies, issued and regulated by central banks, aim to combine the benefits of digital currencies with the stability and trust associated with traditional currencies. Overall, this research paper aims to provide a comprehensive understanding of the evolution of di |
