We know that a country having debt is an extremely negative thing and the continued impression of FIAT is something extremely harmful to the financial health of that country.
According to the US treasury secretary, the USA may run out of cash until October and this would be the first time in history that this would happen to the country. With that, she asks the country to increase its debts so that they can honor their commitments!
What is the alternative to avoid this?
According to the Wall Street Journal, one way to avoid this internal crisis is to implement CBDCs and that would lead to negative interest just by giving to policy makers a new type of tool. Having a good look at Martin Young article:
In his article, "Digital Currencies Pave Way for Deeply Negative Interest Rates," senior columnist James Mackintosh argues that the difference between a CBDC and cash would be highlighted if interest rates fell below zero. People would be more inclined to hold on to physical cash to “earn zero” rather than lose money on a digital dollar issued by the central bank.
It is much easier for the state to control the interest rate, where it can calculate that everyone will lose 1% a month and no one will be able to do anything. This will generate more leverage since you can't store your money under the mattress so you don't lose that buying power.
Negative interest rates are used as a last resort by central banks during a recession to stimulate an economy by encouraging borrowing and spending, with interest being paid to borrowers rather than lenders.
So, for instance, they want you to go into debt and no incentive to save your money, rather spend it. As stated in the article, several countries in the world already carry out this maneuver of negative interest rates, so it would be nothing new if interest rates really stayed that way.
Programmable money is designed with in-built rules that constrain the user. These rules could mean that money expires after a fixed date or its use is restricted to a certain set of goods
This has already been tested in China, that is, you receive your money and if you don't spend it within 6 months it becomes 0 for example. It is a form of total control over your savings, it is a measure the state can take to prevent you from saving your money. It's a trick the state can make if the money turns completely digital, so do you fully trust the State? I dont..