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The first country to introduce a CBDC was the Bahamas in 2020 with the launch of its digital currency called the "Sand Dollar." Since then, many countries have been experimenting with CBDCs, including Nigeria, China, Sweden, Canada, and the United States. In particular, China has made significant progress in developing its CBDC and has already started piloting its use in several cities across the country. However, the main purpose behind the creation of CBDCs is to provide an alternative payment system that is more efficient, secure, and cost-effective than traditional cash payment methods. Several people claim that CBDCs can potentially offer several benefits such as lower transaction costs and enhanced monetary policy tools for central banks. The increasing interest in CBDCs is driven by several factors, including the rise of digital payments, the declining reliability of cash, and the growing popularity of cryptocurrencies. Moreover, the COVID-19 pandemic has accelerated.

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