Several countries are implementing Central Bank Digital Currencies (CBDCs) through commercial beta testing, which could replace physical cash in the future. Japan released their beta version a few weeks ago. The move towards digital currencies has caused concerns about the increased control that governments and banks may have over people's financial activities, including the ability to track and limit transactions. The digital yuan, China's CBDC, is becoming increasingly popular, threatening the US dollar's status as the world's reserve currency.
The transition to digital currency is likely to be imposed, rather than chosen by the public, and could enable the US government to implement a social credit system similar to China's, where compliance with government policies and behavior are monitored and enforced through financial limitations. Despite concerns, compliance with COVID-19 regulations may indicate that the public is willing to comply with government control over their lives.
