Central Bank Digital Currencies: Between State Sovereignty and Public Surveillance

Abstract

This research paper examines Central Bank Digital Currencies (CBDCs) in the context of state sovereignty and individual surveillance. The study explores how governments are using CBDCs to strengthen monetary authority, modernize financial systems, and reduce dependence on private or foreign-controlled payment networks. At the same time, the research highlights growing concerns regarding financial surveillance, privacy erosion, transaction monitoring, and governmental control over citizens’ economic activities. Using a qualitative and analytical research methodology, the study analyzes academic literature, policy reports, and comparative case studies including China’s Digital Yuan, the European Union’s Digital Euro, Nigeria’s eNaira, and India’s Digital Rupee. The findings suggest that while CBDCs offer opportunities such as financial inclusion, faster transactions, and economic efficiency, they also create significant political, ethical, and cybersecurity challenges. The paper concludes that the future success of CBDCs will depend on balancing technological innovation with privacy protection, democratic accountability, and institutional transparency.

Keywords: Monetary Sovereignty, Financial Surveillance, Digital Governance, Data Privacy, State Control, Individual Autonomy