Soon there will be a discussion paper on the so-called FedCoin in the US. It is to be seen whether the Fed issues its own electronic money to the public despite what the other central banks do. Of course privately, there could be many digital dollars.

Fed will have its payment system by 2023 called Fed-Now, first in 40 years. It will facilitate instant exchange of funds from bank accounts — anytime, any day. There is no intermediary in-between.

As cryptocurrencies are volatile, they may never pose a serious challenge to the hegemony of dollar. Private digital dollar could be available which can be converted freely. Cross-border payments would be faster and easier.

In IoT, the devices will make payments and receive them. In such a system a FedCoin is convenient. There could be a settlement system here with tokenised money.

If central banks recognise each other’s digital IDS, cross-border remittances would be far more economical.

FedCoin is not necessary absolutely. Blockchain technology can be used to deal with private tokens.

The discussion paper will indicate whether the US intends to issue an official digital dollar.