Can the Fed Leverage Negative Interest Rates on Your Digital Account Balance?

In the us, context, your concern is less substantial than it is in the context of china. The bigger concern would be that a central bank degutal currency would be used to conduct monetary policy in ways that perhaps officials at the fed think would be desirable, but the average american would not like very much. In particular, i'm thinking about a policy where the fed am sets interest rates to be negative and effectively means that your digital account balance loses some dollars each period. But since customers can withdraw to cash, they can avoid negative interest rates if they were to be imposed.