Central Bank Digital Currencies (CBDCs) are digital versions of a country’s fiat currency, issued and regulated by the central bank. Unlike decentralized cryptocurrencies, CBDCs are centralized and government-controlled, designed to modernize financial systems and enhance monetary policy effectiveness. They offer the same functions as traditional currency but in digital form. However the potential for abuse remains. The centralized control of CBDCs could lead to abuse by governments or unelected officials.