A CBDC is merely a digital version of whatever currency the government is already backing with its “full faith.” It is issued and regulated by the same monetary authority or central bank that issues the country’s fiat money.3 For the US, what is currently being considered is replacing or supplementing some of the Federal Reserve notes with digital US dollars. Instead of a dollar that you keep in your physical wallet, under a mattress, or in a cereal box, you would have a digital-equivalent place of storage, since those dollars’ forms are digital-only. That digital holder for money is a digital
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