A Digital Dollar Is for Banks and Governments, But Not You

Almost nobody talks about digital dollars anymore. Just a couple of years ago, as cryptocurrency was peaking and China was experimenting with a virtual version of the yuan, Washington was abuzz with the idea that the Federal Reserve could create America’s own digital currency.

Enthusiasm faded as people began to hash out the details. Although in theory digital dollars could provide wider access to the financial system, in practice using them would require a smartphone and a banking relationship, which some low-income people lack. Banks complained that giving consumers a safe way to store electronic cash could lead ...