It is true that digital dollar accounts, like private checking accounts, would be insured by the FDIC. But this should be cold comfort to Americans facing the specter of hyperinflation if such insurance was ever actually needed. It is true that, as a lender-of-last-resort, the Fed cannot, by definition, default. But neither can private banks if the Fed provides them with liquidity. Either way, if the economy is getting to a point where such a scenario is possible, people would just lose confidence in the Fed rather than individual banks – another problem of centralization.