The advent of Central Bank Digital Currencies (CBDCs) promises transformative shifts in monetary systems. While they hold potential for enhanced payment efficiency, greater financial inclusion, and improved monetary transmission, CBDCs also pose tangible risks to financial stability particularly in emerging markets with fragile infrastructures. This paper explores these dynamics, combining theoretical insight with empirical analysis of Nigeria’s eNaira. Using data on wallet downloads, transaction volumes, and currency circulation, this study examines how the eNaira influences bank disintermediation, liquidity risk, and system resilience. Findings indicate that despite rapid initial uptake, adoption remains shallow approximately 0.38% of total currency in circulation as of late 2023 revealing both the promise and limitations of CBDCs in practice. Policy recommendations include preserving two-tier distribution, strengthening digital infrastructure, and cautioning against premature scale-up. The study recommended that Central banks, particularly in developing economies, should avoid hasty nationwide rollouts of CBDCs. Instead, a phased introduction starting with pilot programs, followed by limited-scale deployment can help identify operational challenges, manage risks, and refine design features before full adoption.