If you know your money will expire you will spend it, thus stimulating the economy. We also can’t have the dirty proles save their way to a higher social class.
Eswar Prasad, WEF Annual Meeting of the New Champions, June 2023
The above has some chatter about non-US nations exploring the expiry/programmability aspects.
Also, nothing stops people from buying the goods in question by using a payment service provider/bank that provides a layer on top of the CDBC and automatically circulates the money for you behind the scenes to avoid the expiry.
> We also can’t have the dirty proles save their way to a higher social class.
I don't know what you mean by this. Rich people spend their money at a slower rate than poor people so the rich would be disproportionately impacted by this. Someone living paycheck to paycheck isn't going to have much money that can expire to begin with.
As convenient as Apple Pay is, I would not vote for a cashless system. I am just confused that very specific ideas of how this hypothetical system is going to work and am not sure where these come from or why it has to work the way people say and not in a more accountable less abusive manner. Expiring money seems patently absurd so why a central bank would consider it seems so outlandish to me at least.
Some countries, like Costa Rica, do this with cash, but with a much longer timeframe. Every 10 years or so they launch new banknote designs, and the old ones are gradually removed from circulation, until can only be exchanged at the banks and eventually lose their value by becoming "demonetized".
I just don't see how this is realistic. It is basically impossible to enforce.