US digital dollar: Will fiat currency ride the crypto wave?

Two major research projects are under way to see if the US central bank should begin minting digital money.

The United States dollar has reigned for many decades as the top global reserve currency, backed by the full faith and credit of the US government and the value of its powerful economy. But in recent years, the dominant monetary unit of choice worldwide has faced an increasing array of threats, ranging from its own inefficient financial infrastructure and the introduction of the Chinese e-yuan to the spectre of Facebook’s Diem and cryptocurrencies like Bitcoin. So as countries like the Bahamas, China and Sweden test the viability of central bank digital currency (CBDC), policymakers in the US are taking stock.