Sure you can, but you have to use a trick. You can fake it by modifying the background color of the cell where the cursor is located. Many terminal editors have support for multiple cursors.

I assume this doesn’t work if your terminal uses a vertical line to show the cursor?

Yeah that's a drawback -- multi-cursors will be displayed as blocks regardless. As far as I know there is no way to solve that, but using block cursors for multi-cursor operations isn't that bad.

You can emulate it visually with white-background text.