NPR reports that since its introduction as the United States' national currency, the dollar has experienced many evolutions.
But the newest proposed update to the American dollar may be the most radical one yet.
United States officials are reportedly considering a digital version of the dollar, one more tailored toward today's economy.
In addition to minting coins and printing paper currency, the United States could begin issuing digital cash stored in the "digital wallets" of smartphones.
Experts say the pursuit of digital currency could result in the elimination of transaction fees.
Each time a device interacts with a bank, there are transaction fees.
According to NPR, in 2020, United States businesses shouldered more than $110 billion worth of transaction fees.
One of the more obvious downsides to a digital dollar in the United States is the increased visibility of the government into citizens' financial privacy.
"There will be legitimate questions about how much the government knows about each individuals ... and also, how much it can act to restrain activities by individuals." Raghuram Rajan, professor of finance at the University of Chicago Booth School of Business, via NPR
But the newest proposed update to the American dollar may be the most radical one yet.
United States officials are reportedly considering a digital version of the dollar, one more tailored toward today's economy.
In addition to minting coins and printing paper currency, the United States could begin issuing digital cash stored in the "digital wallets" of smartphones.
Experts say the pursuit of digital currency could result in the elimination of transaction fees.
Each time a device interacts with a bank, there are transaction fees.
According to NPR, in 2020, United States businesses shouldered more than $110 billion worth of transaction fees.
One of the more obvious downsides to a digital dollar in the United States is the increased visibility of the government into citizens' financial privacy.
"There will be legitimate questions about how much the government knows about each individuals ... and also, how much it can act to restrain activities by individuals." Raghuram Rajan, professor of finance at the University of Chicago Booth School of Business, via NPR
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