<p>The study investigates the impact of digital capital on both consumption poverty and multidimensional poverty in Bangladesh by using the Household Income and Expenditure Survey (HIES) 2016. Employing the Propensity Score Matching (PSM) method for impact evaluation, the study examines the impact of digital capital on poverty reduction in Bangladesh, including rural and urban settings. The findings show that access to digital capital reduces lower and upper-consumption poverty by about 5–7% and about 9–11%, respectively, depending on the different matching methods. Similarly, the lower multidimensional poverty is reduced by about 2–3% across different matching specifications. Disaggregate-level findings present a much stronger poverty-reduction impact in rural areas compared to urban areas. For instance, lower-income poverty is reduced by about 9–11% in rural areas, compared to 2–4% in urban areas. The most substantial poverty-reduction effect is observed in the upper consumption group, which decreases by about 13–17% for the rural areas and by about 6% for the urban areas. Concerning multidimensional poverty, about 5–7% and 1–10% poverty reductions are observed for the lower and upper categories, respectively. However, digital capital appears ineffective in reducing multidimensional poverty for urban people at both lower and upper levels. The obtained findings underscore the importance of expanding equitable access to digital capital as a strategic policy priority to combat poverty in Bangladesh effectively.</p>