[sunir]

If you destroy cash the idea is to motivate people to invest their cash to get the economy moving. Punish the cash hoarders.

Quantitative easing has not resulted in increasing credit, and therefore the velocity of cash in the economy. If you make it painful to keep cash in one place they hope it is like a game of hot potato and the economy will move again.

The countering strategy is that there is nothing to invest in so it is better to create alternates to cash to preserve value