The adoption of Central Bank Digital Currencies (CBDCs) is regarded as the Central Bank’s latest advancement to optimize the usage of fiat money under multiple domains, such measures illustrate the evolution of the monetary sector in the digital world and are expected to stimulate financial innovation. By analyzing existing academic research performed towards CBDCs through theoretical advancement, contextual analysis, and empirical contributions, this article aims to highlight the current state of academic knowledge towards CBDCs in multiple disciplines, with the intention of offering future research pathways. A systematic literature review approach was conducted using 39 research papers that were identified through the Scopus and Web of Science databases. The current study provides an overview of CBDCs to scholars and policymakers, through an analysis of a variety of published literature covering multiple aspects; which will be imperative towards addressing the rationale for and determining the benefits of utilizing CBDCs.