Demonetizing: meaning, definitions and examples
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demonetizing
[ˌdiːməˈnɛtaɪzɪŋ ]
Definition
financial term
Demonetizing refers to the process of stripping a currency unit of its status as legal tender. This can be done for a variety of reasons, including the need to combat counterfeit money, reduce inflation, or implement a new currency system. The act often leads to the withdrawal of certain banknotes or coins from circulation. Demonetization can have significant economic impacts, affecting businesses, consumers, and overall market stability.
Synonyms
delegalize, discontinue, invalidate.
Examples of usage
- The government announced demonetizing a large denomination banknote.
- Demonetizing has led to a temporary cash shortage in the economy.
- Experts debated the potential effects of demonetizing against inflation.
Interesting Facts
Economic Theory
- The practice of demonetizing can occur during times of economic crisis when policies are implemented that remove the value of currency.
- Demonetization can lead to a sudden increase in cashless transactions as people adapt to avoid losing money.
- It often involves changing or replacing the currency system, forcing people to exchange old money for new.
Digital Economy
- In the online world, platforms may demonetize content that violates community guidelines, meaning creators can no longer earn money from that content.
- Streaming services frequently change their monetization policies, influencing how creators make income through ad revenue and subscriptions.
Historical Events
- India's 2016 demonetization initiative aimed to tackle black money and corruption by invalidating 500 and 1,000 rupee notes.
- During the Roman Empire, the demonetization of certain coins was used as a strategy to manage inflation and restore faith in currency.
Social Impact
- Demonetization can lead to protests and social unrest when people's livelihoods are threatened or impacted.
- It often affects lower-income individuals disproportionately, as they may rely heavily on cash transactions.
Cultural Perspectives
- Various cultures have experienced moments of demonetization, often reflecting broader societal changes or government policies.
- Literature and films occasionally explore themes of demonetization, portraying struggles that arise from losing financial stability.
Translations
Translations of the word "demonetizing" in other languages:
🇵🇹 desmonetização
🇮🇳 डिमोनेटाइजिंग
🇩🇪 Demonetarisierung
🇮🇩 demonetisasi
🇺🇦 дедоларизація
🇵🇱 demonetyzacja
🇯🇵 デモネタイズ
🇫🇷 démontisation
🇪🇸 desmonetización
🇹🇷 demonetizasyon
🇰🇷 디모네타이징
🇸🇦 إزالة العملات
🇨🇿 demonetizace
🇸🇰 demonetizácia
🇨🇳 去货币化
🇸🇮 demonetizacija
🇮🇸 demonetization
🇰🇿 дедоларизация
🇬🇪 დემონეტიზაცია
🇦🇿 demonetizasiya
🇲🇽 desmonetización