I like the question.

I think the answer depends on how do you define, or, what do you mean by "there is a dollar".

What you see as your account balance in an app is the bank liability to you. In this sense, this liability is real.

Of course, they don't have physical dollar bills in a vault. They have some fraction of their liabilities as a reserve...

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Well, that was the question - what is a dollar?

To be specific - is DAI, LUSD, Tether, USDC or covered short of btc/usd perpetual swap a dollar? If not, what specifically is different about a dollar position in Deutsche Bank or HSBC in London?