CBDC- Central Bank Digital Currency

It is true the USD is mostly in digital form but it is not a CBDC; nor is the Yuan which is almost exclusively digital. There are still a ton of physical dollars out there, most of them outside the United States.

The difference with a CBDC is that the government can do things it cannot do now. For example, it can go negative very easily with a CBDC. They also can eliminate a large amount of the banking sector since they do not need their bonds sold. Ultimately, CBDCs benefit the governments (read politicians) more than the central banks. The banking industry is just starting to wake up to that fact.

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