A US digital dollar is on the way with the Federal Reserve revealing details in a new document.

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According to this document, the Fed plans to introduce a US digital dollar called the Central Bank Digital Currency (CBDC). This would allow citizens to download and use an app for payments.

Of course, that’s only if people start using the app. A CBDC sounds good on paper, but not everyone will support the Federal Reserve having a better idea of ​​its finances. It is also worth mentioning that the US government would need a major overhaul of its financial networks to avoid cyberattacks.

While this is a definite barrier to a US digital dollar, there are some benefits. This includes giving people without bank accounts easier access to e-commerce and digital payment services. It would also make it easier for the government to send certain payments, such as tax returns or economic aid payments, reports The bustle.

So when can we expect CBDC to start appearing on smartphones? Bank of America says a US digital dollar is inevitable and will likely appear between 2025 and 2030.

Although it’s still a long way off, there are other options that work in place of a digital dollar: stablecoins. It is a type of crypto tied to the value of a fiat currency. Attached (USDT-USD) and USD coin (USDC-USD) are two examples of stablecoins pegged to the US dollar.

With the growing interest in digital currency, stablecoins are expected to see growth in the coming years. We will have to wait and see if this continues after the introduction of the CBDC.

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As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.