The Chinese government will soon launch its CBDC with an expiry date mechanism.
The move will increase the circulation of digital currency in the country, which boost China’s economic growth.
Experts and individuals believe that China is utilizing the CBDC to facilitate slavery.
Particularly since the outbreak of the pandemic, a growing number of countries worldwide are being enticed to create their own central bank digital currencies.
Meanwhile, governments or central banks are also exploring ways to make CBDC use mandatory among citizens. Recently, the Central Bank of Nigeria put a cap on ATM withdrawals to increase the adoption of CBDC.
In line with this, reports cited that China revealed a mechanism that makes their central bank-backed digital Yuan or eCNY a “money with an expiry date.”
The e-CNY is a digital version of China's legal currency, officially known as the Digital Currency Electronic Payment (DCEP). It is designed primarily for high-frequency, small-scale retail purchases and transactions.
So, coming back to the topic, why is China launching a CBDC with an expiry date mechanism, does China intend to create a CBDC dependency, and is it a threat to Chinese crypto investors?
Earlier this year, several media outlets reported that China was planning to introduce an expiry mechanism for their CBDC, but the report was disregarded as a rumor.
However, sources yesterday claims that China had launched a money with an expiry date proposal. The proposal would compel Chinese citizens to use CBDC during a specific time period.
Experts believe that this will increase the circulation of digital currency in the market, which will assist China's economic growth. The government has not yet disclosed the timeframe of the expiry of the digital Yuan or eCNY.
This move from China clearly indicates that the government is planning to create a centralized environment for the usage of digital currency.
The move from the Chinese government will also affect the native crypto investors of the country, which are currently experiencing the burnt of the ongoing crypto winter.
The CBDC vs Crypto has long been a debatable topic among both centralized and decentralized communities. Meanwhile, experts believe that CBDC was introduced to create a monopoly in the digital currency market.
As several countries around the world have banned the usage of cryptocurrencies, citizens are left with the only option to interact with digital currency is the CBDC. This implies that CBDC is being used as a device to facilitate slavery.
Meanwhile, the only option for individuals to attain freedom in the digital currency world is the adoption and usage of cryptocurrencies, which central banks worldwide believe will end their existence.
What do you think, will other governments come up with similar CBDC expiry proposals to increase adoption and dependency? Share your views in the comment section below.
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