What would happen if instead of collecting tax for UBI the central bank would issue new currency? Prices would keep on raising forever, but from time to time we could cut a few zeros. The ones who hold onto cash would see their money slowly losing value, better use it or lose it. This system would be easier to implement.
It’s called hyperinflation and never ended well
That is what what we do now.
Controlled inflation by central banks is really controlled reduction of the value of the currency. ~2% per year is the target. The USA gets a free pass at the moment because USD is "the" reserve currency. If/when that changes we might get a lesson in hyper-inflation. :(
That's why the wealthy don't hold much cash. (unless they see a crash coming)