Federal Reserve Digital Dollar

The Federal Reserve Digital Dollar, also called a Central Bank Digital Currency (CBDC), is a digital form of U.S. currency issued directly by the Federal Reserve. It would function like electronic cash, allowing people and businesses to make fast, secure transactions using digital wallets. Unlike cryptocurrencies, it would be backed by the U.S. government and would aim to enhance payment efficiency, support financial inclusion, and strengthen the stability of the monetary system. The Federal Reserve is exploring this idea to improve how money moves in the digital age, but it’s still in the research and development phase.