What is a “digital dollar”? How is it different from existing money that is kept in banks and spent using credit cards/wire transfers?

Question

I have been hearing a lot of buzz about the government introducing a “digital dollar”. But isn’t most money already digital? What would be the big difference in this system?

In: 378

Answer 1

The BIGGEST difference, and why governments are so in favour of going completely digital with national currencies, is the ability to track any and all purchases, thus eliminating tax avoidance.

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If all currency is digital, every transaction leaves a trail, so there will be no more “how much for cash” type of deals to be had.