Other than for data collection purposes, digital money is no different from paper money. The category is Fiat Money and both forms are firmly in that category. Digital-only money just gives the government total control of the population.A federal agency or a clerk can disallow a purchase at any level of make a purchase for a citizen without authorization or simply confiscate funds or forbid their use.
Although it is “digital money”, bitcoin and other cryptocurrencies are not backed or controlled by a state.