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

It’s, in simple terms, a state run bank that might outcompete private banks in time. Better than nationalization but i’m sure banks are loosing some sleep over this potentially. This also has tax implications as you can imagine – seeing how they now own the data on your financial transactions