'Expiring Money': EU's CBDC to Include 'Negative Interest' Trap
Central Banks will punish those who save their money.
The European Central Bank (ECB) is readying a digital currency that features negative interest rates, a tool that erodes the value of your money, or wipes it out completely, according to the Digital Euro Association (DEA) think tank.
Sarah Palurovic, the executive director of the DEA think tank said during an appearance on the Poundcast podcast that the ECB wants to “keep the possibility open for tiered remuneration” after it introduces the digital euro because the ECB wants to have “measures that incentivise or disincentive people to hold more or less CBDCs.” She added that one of the measures the ECB is considering is negative interest rates.
In simple terms that's money with an expiration date.
Negative interest rates allow central banks to choose a rate at which your money expires and punish those who save their money. For example, if they set a negative interest rate of -10%, you lose 10% of your money each year unless you spend it. This is said to be needed at times when the economy needs stimulating, but is being called 'Communism by the back door' by some.
The potential scope of a currency with negative interest rates is vast. The euro has around 341 million daily users and is the official currency of 20 Western countries. The EU would have the power to devalue your savings at the flick of a switch, or make it worthless unless spent of products and services that they approve of. Globalist institutions such as the World Bank are big fans of expiring money because they see it as a “monetary policy tool” that can “make money costly to hold and would thus pressure people to spend it quickly.”
Negative interest rates are just one of the ways central banks around the world hope to control how people spend by programming their money. The ECB has previously proposed having spending limits on the digital euro, the Bank of England (BOE) wants the power to decide what people spend their CBDCs on, and the World Bank wants to be able to “ban certain users from access to cash.”