demonetization

/di:,mʌnitai'zeiʃn/

Thân thiện

The government announced the demonetization of the old banknotes.

Definition

1. Noun:
   • The act of stripping a currency unit of its status as legal tender: "Demonetization" refers to the official process by which a government removes a specific coin or banknote from circulation, ending its validity as money that must be accepted for payment of debts.
   • The process of depriving something (e.g., a precious metal) of its monetary value: More broadly, it can describe ending the use of any commodity (like gold or silver) as the official basis for a monetary system.

Usage Examples

• Noun:
  • The sudden demonetization of the high-value banknotes caused significant public inconvenience.
  • Historically, the demonetization of silver had major economic consequences.
  • The government announced the demonetization of the old coin series to combat counterfeiting.

Advanced Usage

• Economic Policy Context: "Demonetization" is often used in discussions of macroeconomic policy, anti-corruption measures, and currency reform.
  • The primary stated goal of the demonetization was to reduce the shadow economy.
• Digital/Crypto Context: In modern finance, it can describe the process of moving away from physical cash.
  • Some economists debate the potential benefits of a gradual demonetization of cash in favor of digital payments.

Variants and Related Words

• Demonetize (verb): To carry out the act of demonetization.
  • The central bank decided to demonetize the old 500-unit notes.
• Remonetization (noun): The opposite process; restoring an item's status as legal tender.
• Demonetized (adjective): Describing something that has undergone this process.
  • The demonetized coins are now only valuable to collectors.

Synonyms

• Invalidation (of currency)
• Withdrawal (from circulation)
• Discontinuation (as legal tender)

Antonyms

• Monetization (the process of establishing something as legal tender)
• Remonetization

Related Phrases/Concepts

• Legal Tender: The official money that must be accepted if offered in payment of a debt.
• Currency Recall: A similar action where old currency is called back and replaced with new.
• Cashless Economy: A potential long-term outcome of policies that promote demonetization of physical cash.

Học thuật

Noun

1. ending something (e.g. gold or silver) as no longer the legal tender of a country

Từ đồng nghĩa

• demonetisation