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 really *not* different than money kept in banks. A digital dollar is cash in electronic form. This means that people without bank accounts can make electronic transactions.