Abstract
Central bank digital currency (CBDC) is a digital form of central-bank money proposed or implemented to complement existing payment arrangements. This article revisits the comparative roles of CBDC and physical cash through a structured synthesis of literature on their features, perceived benefits, and implementation risks. The original review reported an initial pool of 146 records and a final set of 35 studies, largely published between 2017 and 2021. Rather than presenting this historical sample as a new 2026 search, the present version reorganizes the original evidence and frames its implications for policy discussion in June–July 2026. The synthesis indicates that CBDC may support faster digital settlement, reduce some cash-handling costs, improve traceability for authorized oversight, and broaden access to central-bank money in digital settings. These potential advantages are conditional: access depends on devices, connectivity, digital capability, sound design, privacy safeguards, and public confidence. CBDC can also create operational and cyber risks, complicate the role of commercial banks, and exclude people who rely on cash or have limited digital access. The analysis therefore does not treat CBDC as an automatic or universal replacement for notes and coins. It argues for a carefully governed, interoperable payment ecosystem in which the continued role of cash, accessible alternatives, consumer protection, and financial stability are explicit design considerations.
