Even though small businesses are a huge part of the U.S. economy and have much to gain from cheaper, more efficient payment systems, they have largely been ignored during the debate over digital currencies. These businesses have less bargaining power than large companies and have trouble with cash flow as they wait to be paid for goods and services. Digital currency can help. Small businesses can keep more of what they earn and get paid faster with these technologies. This could greatly improve small businesses and help them survive economic shocks.
New types of digital assets, such as stable coins and cryptocurrencies, have been developed over the last few years. New payment rails can move value across the globe not only in real-time but also at a much lower cost, thanks to these innovations. Stable coins are less volatile than cryptocurrencies as they are pegged to a currency such as the U.S. dollar. The governments were pushed to explore the central bank digital currencies. The central bank is a direct liability of the central bank because it runs on public sector infrastructure and uses digital cash.
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