Digital Dollar: status, how it works & market impact
What it is
A "digital dollar" would be a U.S. central bank digital currency. The Federal Reserve has published research and explored wholesale experiments, but has repeatedly said it would not issue a retail CBDC without clear authorisation, and the topic is politically contested.
How it works
No retail design has been adopted. Discussion has covered intermediated models (distributed via banks), privacy, and the interaction with a large and growing market in private dollar stablecoins.
How it differs from crypto and stablecoins
Unlike dollar stablecoins (privately issued tokens claiming a dollar peg), a digital dollar would be direct central-bank money. The U.S. debate increasingly focuses on regulating private stablecoins rather than issuing a CBDC.
What it means for the market
Because the dollar underpins most crypto trading and stablecoins, U.S. policy on both a digital dollar and stablecoins is among the most consequential money-layer stories we track.
Primary sources
Frequently asked questions
Is there a digital dollar?
No retail digital dollar has been issued. The Federal Reserve has said it would not proceed without authorisation. Private dollar stablecoins are a separate, growing market.