If the US dollar becomes a digital currency. Why would I ever deposit any of my money into a bank when I could just put it into my digital wallet to be transferred to? Wherever I decide it needs to be transferred just like I would with any other digital currency?
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You wouldn’t be able to store your money in a digital wallet that’s independent from banks.
That is, unless the new digital USD operates on a technology like blockchain.
The system that we have now is that your “wallet” is a bank account, operated by a bank. They keep track of your money and they are trusted by you and others to not lie about how much you have.
If you could have a fully independent digital wallet, nobody could be sure that you didn’t add a few zeroes to the end of your balance.
The reason why digital wallets work with blockchain based currencies like bitcoin is that everyone keeps track of everyone else’s account history.
So if I get a bitcoin, you and every other person who has a wallet will know about it. This is why I can’t trade with a forged wallet, because every account is essentially public.
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