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What is a digital dollar? No, it’s not the money you already see online in your bank account, which is in fact a record of your bank’s obligations to you. Rather, a digital dollar is a cryptographic representation of the money the U.S. Federal Reserve issues today in the form of cash and bank reserves.
The US Federal Reserve is starting a CBDC pilot project in the US in cooperation with some well-known financial institutions. A digital dollar is to be tested on the basis of blockchain technology, which has the potential for innovation.…
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