The "Digital Dollar" refers to a digital version of the United States dollar, which is being explored by the Federal Reserve. It aims to provide a secure and efficient way for people to make transactions electronically, similar to how we use cash but in a digital format. This concept is part of a broader trend of central bank digital currencies (CBDCs) being considered by various countries. The Digital Dollar could enhance financial inclusion, streamline payments, and improve the overall efficiency of the financial system. However, discussions are ongoing about its potential impacts on privacy and the banking sector.