The global landscape of finance is undergoing a significant shift with the rise of Central Bank Digital Currencies (CBDCs). As central banks worldwide, including the Federal Reserve and European Central Bank, push forward with these initiatives, privacy considerations are taking center stage. The potential impact on cryptocurrencies like Bitcoin and Ethereum remains under scrutiny. IMF collaboration on CBDC implementation aims to achieve a balance between data protection for users and regulatory compliance through privacy-enhancing technologies. The International Monetary Fund (IMF) is also driving the development of privacy-focused CBDCs, promising greater transparency and accountability mechanisms to be embedded in these digital currencies. This approach seeks to promote user data security while ensuring adherence to regulatory requirements.