The virtual version of a fiat currency is referred to as central bank digital currency (CBDC). A CBDC is a digital token or electronic record of a country’s official currency. As such, the monetary authority or central bank of the country issues and regulates it. As a result, they are backed by the issuing government’s complete confidence and credit. By integrating the unbanked into the financial system, CBDCs may make monetary and fiscal policy implementation easier and increase financial inclusion in an economy. They may destroy people’ privacy since they are a centralized type of cash. CBDCs are now being developed in many parts of the globe.