DIGITAL CURRENCY AND CENTRAL BANK DIGITAL CURRENCIES (CBDCS): EXPLORE THE RISE OF DIGITAL CURRENCIES, INCLUDING CRYPTOCURRENCIES LIKE BITCOIN AND STABLE COINS, AND THE POTENTIAL IMPLICATIONS OF CENTRAL BANK DIGITAL CURRENCIES (CBDCS) ON MONETARY POLICY, F

Abstract

The advent of digital currencies has been a transformative phenomenon in the world of finance, marking a significant shift from traditional fiat currencies to innovative, technology-driven alternatives. Among these, cryptocurrencies, led by Bitcoin, and stable coins have garnered considerable attention, while Central Banks have begun exploring the concept of Central Bank Digital Currencies (CBDCs). This article delves into the rise of digital currencies, examining the evolution of cryptocurrencies, the emergence of stable coins, and the potential of CBDCs, highlighting both the benefits and challenges associated with these novel forms of exchange.