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https://www.scmp.com/economy/china-economy/article/3116521/chinas-digital-currency-trial-returns-shenzhen-round-2-twice https://www.scmp.com/economy/china-econo

by narism 5y ago

https://www.scmp.com/economy/china-economy/article/3116521/chinas-digital-currency-trial-returns-shenzhen-round-2-twice https://www.scmp.com/economy/china-economy/article/3116521/c... > winners have until January 17 to spend their e-yuan before it expires The caveat there is that expiration in this case is probably to encourage winners to spend the money/provide an end date to the experiment. Most likely regular e-money would not have that condition but special payments (ex: stimulus) could.

livueta 5y ago
That is a fair caveat, though I'd argue that it is clearly a test case for broader expansion in an instance where the condition is unlikely to produce a backlash, attached as it is to stimulus money. c.f. speed of yuan CBDC rollout; https://www.economist.com/the-world-ahead/2021/11/08/central-banks-are-getting-closer-to-issuing-their-own-digital-money https://www.economist.com/the-world-ahead/2021/11/08/central... c.f. central banks salivating at the prospect of having extra levers to pull: https://www.economist.com/the-economist-explains/2021/02/16/what-is-the-fuss-over-central-bank-digital-currencies https://www.economist.com/the-economist-explains/2021/02/16/... > An impediment to negative interest rates at the moment is that savers can switch to cash, which has a de facto interest rate of zero. In a cashless world central banks could in theory programme digital currency to have negative rates. > Once ascendant, govcoins could become panopticons for the state to control citizens: think of instant e-fines for bad behaviour.