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The Big Difference Between a Digital Dollar and a CBDC

Extreme Macro One Dollar Bill Pyramid Eye
Photographer: BanksPhotos/E+

Outside of perhaps China, right now the big use case for central bank digital currencies (CBDCs) seems to be just talking about them. Crypto is cool right now and people are interested in digital money, so government and central bank officials are also spending a lot of time talking about their visions of how fiat currencies could be brought into this new realm.

However, there’s still a lot of ambiguity about how, say, a digital dollar would be designed, or what exactly it would accomplish. We’re still at the talking stage.