Where do the dollars come from?
A country’s central bank creates money in physical (notes, coins) and digital form
By examining its liabilities, the total amount of money created can be determined.
Central banks face criticism for their perceived role in “printing” vast sums of money seemingly out of thin air.
Bank deposits can be thought of as stablecoins, with deposit insurance and convertibility into cash functioning as the mechanism guaranteeing t
he 1-for-1 peg.
As we transition towards a cashless society, the role of public money (cash) as the anchor of our monetary system is undergoing a transformation.
Currently, cash serves as the only means through which individuals can access public money, as only banks are permitted to hold accounts with the Federal Reserve.
This is where Central Bank Digital Currency (CBDC) comes in. With the eventual retirement of physical forms of money
CBDC can be thought of as tokenized cash, representing a digital form of central bank-issued currency.