/biz/ - Business & Finance

>The proposal is for a central bank to divide the monetary base into two separate local currencies—cash and electronic money (e-money). E-money would be issued only electronically and would pay the policy rate of interest, and cash would have an exchange rate—the conversion rate—against e-money. This conversion rate is key to the proposal. When setting a negative interest rate on e-money, the central bank would let the conversion rate of cash in terms of e-money depreciate at the same rate as the negative interest rate on e-money. The value of cash would thereby fall in terms of e-money.

https://blogs.imf.org/2019/02/05/cashing-in-how-to-make-negative-interest-rates-work/

https://www.youtube.com/watch?v=C2mpW8cnewA