The Federal Reserve’s digital dollar “intermediary bank” model could exacerbate financial inequality. By relying on private banks to manage CBDC accounts, access may favor wealthier households with established banking relationships, while unbanked or underbanked populations face barriers like high fees or limited digital infrastructure. Research suggests poorer households may shift to CBDC for lower costs, but banks might raise deposit rates to retain richer clients, deepening disparities. The model’s design risks prioritizing financial stability over inclusion, potentially sidelining vulnerable communities. Without robust policies ensuring equitable access, such as low-cost accounts or public-private partnerships, the digital dollar could reinforce existing wealth gaps rather than bridge them, undermining its potential to promote financial equity.