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Definition: digital dollar

A transition from the current monetary system in the U.S. to some sort of all-digital system, whether blockchain-based or not. Many fear it is meant for government surveillance rather than convenience. The makeup of the ultimate digital dollar is constant speculation; however, except for cash, the U.S. monetary system is already mostly digital. Money generated by the Fed or residing in banks and other financial institutions is nothing more than bits and bytes in a computer. However, if the country switched to an all-digital system, it could mean that cash payments were no longer a valid method of payment and might not be accepted by bona fide retail outlets and organizations. See cryptocurrency.