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October 4, 2022
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The digital yuan may have an expiry date –

So far, the suggestion that CBDCs will have expiry dates has been considered part of an unlikely conspiracy theory. Now, however, it turns out that the digital yuan that is currently being tested in China will most likely have a so-called “Expiry date”. In other words, the government will be able to extinguish digital yuan after a predetermined date. Reason? Forcing citizens to spend money.

Money and the expiry date

According to reports from The Wall Street Journal, various digital yuan expiry date options have already been tested. The idea is terrible for the thrifty Chinese, but great for the authorities and the People’s Bank of China, which, thanks to such a mechanism, could stimulate consumption in periods of economic downturn. For example, the central bank will be able to announce that a portion of the digital yuan will expire on a specific date. Thus, I would force the citizens of the country to storm the stores and spend money.

Today, the People’s Bank of China is also the central bank that conducts the most advanced work on the issue of digital currency. “Living organism” tests are conducted in several of the country’s largest cities.

USA anxiety

Beijing’s CBDC policy is reportedly worrying about the White House. While officially US officials say they do not want to participate in the digital currency issuance race, Bloomberg adds that, in fact, China’s efforts are seen as an attempt to challenge the dollar by strengthening the yuan’s position.

Worse still, the digital yuan could theoretically help to circumvent US sanctions. Thus, it would become a tool needed by, for example, Iran, North Korea or possibly Russia.

That’s not all, because the digital currency of the People’s Bank of China would also give the Chinese government total control over domestic financial transactions. In practice, the government could track the consumption habits of citizens. The idea is also reminiscent of the totalitarian system that was created years ago by a Polish writer in his novel “Limes Inferior” Janusz Zajdel. Money serves to control the citizen and keep track of where he is now.

It is worth adding, however, that in the 20th century, Washington also used similar tools, which during the Great Depression urged citizens to increase consumption with information that the dollar would devalue.

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