Definition ∞ Digital Dollar Flows represent the movement of digital representations of the US dollar across various financial systems. This includes transactions involving stablecoins, central bank digital currencies (CBDCs), or tokenized fiat. These flows facilitate the transfer of value in a purely digital format. They aim for faster and more efficient payment processing.
Context ∞ Discussions surrounding digital dollar flows are prominent in news related to global financial innovation, regulatory oversight of stablecoins, and the potential impact of a US CBDC on traditional banking. These movements reflect evolving payment landscapes and the increasing digitalization of national currencies. Observers track these flows for insights into market liquidity.
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