Not surprising, for the citizenry of the US, this ranks right up there as one of the worst ideas
Since near-0% savings interest rates are not enough to squeeze the millions-billions-trillions oh my, out of retirement savings and into government sponsored, bank-favored, ruling party controlled assets, remove the penalty-tax so these funds become unencumbered and find way onto bank balance sheets. Of course there will be restrictions since the currency, if taken out of circulation via paid-for physical possession assets would cause the scheme to fail in it's entirety.
Make no mistake: The purpose of this type "inducement" is to ensure a majority remains or becomes dependent on government.
