Part 2/8:
One of the most groundbreaking aspects of CBDCs is their programmability. Unlike traditional cash or even digital bank transfers, CBDCs can be designed as highly flexible tools, capable of executing complex rules set by the issuing authority.
For instance, some CBDCs can be programmed to include an expiration date—forcing users to spend their digital currency within a specified period or lose the value. This feature is already in use in China, where the digital version of the yuan, known as DCEP or Digital Currency Electronic Payment, incorporates such expiration mechanisms to encourage circulation and prevent hoarding.