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- [Narrator] The Federal Reserve might want to fix your wallet by turning it from this into this. (phone beeping) Though your wallet is still designed for dollar bills, Americans have been using cash to buy things less and less over the years. (till dinging) Thats part of why the Fed is considering digitizing the US dollar, giving people money they can access on their phone and bypassing electronic payments that can be slow and costly for businesses. Some see this as a necessary upgrade to the US financial system but others worry it could potentially upend commercial banking. - Theres some very, very difficult questions to answer but I think we, and we are engaged in a serious program to understand both the technology and the policy issues. - [Narrator] A central bank digital currency, or CBDC, is exactly what it sounds like, a purely digital form of a countrys money issued by its central bank that people can use just like cash. Its true that cards and apps already allow for elect