Bitcoin's decentralized system challenges the traditional role of central banks and fiat currencies, sparking debates about its potential to replace them. Central banks regulate economies through monetary policies, aiming to maintain stability and trust in financial systems. However, Bitcoin's technology, designed as a peer-to-peer electronic cash system, offers an alternative, bypassing financial institutions. Despite its potential, Bitcoin faces hurdles such as usability issues, vulnerability to theft, and dependence on government acceptance. Its limited supply and fluctuating value also raise concerns about long-term viability. While Bitcoin has gained popularity among speculators, its widespread adoption as a replacement for central banks remains uncertain. Central bank digital currencies (CBDCs) further complicate the landscape, potentially competing with Bitcoin.