Digital Asset?

[GlobalCitizen]

Is a balance with Wise (or paypal, or similar) considered a digital asset? I've read through the IRS guidance about this, but I'm afraid I don't understand the terminology in use:

https://www.irs.gov/businesses/small-bu ... tal-assets

Am I safe in saying that any balance backed by Fiat currency is not a digital asset?

[GlobalCitizen]

I asked AI and it told me that a wise balance is not considered a "digital representation of value which is recorded on a cryptographically secured, distributed ledger" because Wise controls the ledger and the balance represents real-world currency.

Based on this, I'm leaning towards ticking the box "no" regarding digital assets on my tax return.

[GlobalCitizen]

I asked AI and it told me that a wise balance is not a "digital representation of value which is recorded on a cryptographically secured, distributed ledger," because Wise controls their own ledger and the balance represents real-world currency.

Based on this, I'm leaning towards ticking the box "No" to the digital assets question on my 1040.