"1 My first observation is that the general public already transacts mostly in digital dollars—by sending and receiving electronic balances in our commercial bank accounts. These digital dollars are not a CBDC, because they are liabilities of commercial banks rather than the Federal Reserve.
Importantly, however, digital dollars at commercial banks are federally insured up to $ which means that for deposits up to that amount—which means for essentially all retail deposits in the United States—they are as sound as a central bank liability. The Federal Reserve also provides digital dollars directly to commercial banks and certain other financial institutions.