In recent years, expectations for central banks have increased excessively due to the major role in resolving financial and real crises of central banks. However, money policy also has its limits. The 2008 Global Crisis and the reduced room for manoeuvre brought about by the Covid-19 process's difficulty with the effective lower bound severely hindered the execution of monetary policy. In addition, globalization of finance and financial innovations are some of the factors limiting the monetary policy. In this study, the efficacy of monetary policy will be examined in relation to the central bank digital currency (CBDC) that central banks are preparing to issue as a part of the present acceleration of digitization in the sector of finance. It is obvious that the economy would be significantly impacted by the release of CBDC. There is general agreement in the literature that monetary policy using CBDC will provide better results than the present system. It is anticipated that, particularly with the deployment of CBDC, the issue of the effective lower bound would be resolved, the negative impacts brought on by quantitative easing will be eliminated, and the interest rate pass-through will be strengthened. The use of CBDC for developed countries may contribute more to the effectiveness of monetary policy than for developing countries. The adoption of CBDC in developing countries is probably going to lead to more currency substitution (dollarization) and a weakened ability to regulate the impacts of capital flows. For developing countries, this will entail losing their ability to execute their own monetary policies.