New Zealand Central Bank Seeks Public Consultation on CBDC

The Reserve Bank of New Zealand published two discussion papers on Thursday to assess the use cases of a central bank digital currency (CBDC) and is seeking public feedback.

The two papers are entitled: The Future of Money – Stewardship and The Future of Money – Central Bank Digital Currency. The central bank wants public feedback before the deadline of December 6, 2021.

“We’re seeking public input on how we should perform our role as steward of money and cash, and how we should assess the case for central bank money in a digital form alongside cash,” said Assistant Governor Christian Hawkesby.

The two papers focus on the ‘general-purpose’ of CBDCs and are evaluating the applications for both individuals and businesses.

In addition, the central bank clarified that if any such CBDCs are to be issued, they will be in circulation alongside the existing cash currency. Further, it pointed out that despite a growing cash circulation in the country, most of the transactions are happening digitally.

“As stewards, we want to ensure that our central bank money remains a stable value anchor for the monetary system and available as a fair and equal way to pay and save - so ensuring that New Zealanders have access to money in forms that suit them and their changing needs,” Hawkesby added. “These outcomes mean that New Zealand keeps its monetary sovereignty.”

CBDCs Are Turning into Reality

While New Zealand just took its initial steps towards CBDCs, many other countries have left it far behind. Central banks of several smaller nations have already issued their digital currencies. But, among major economies, China is running at the forefront, whereas, many other countries are testing the prospect.

“A central bank digital currency would see the features and benefits of cash enjoyed in the digital world, working alongside cash and private money held in commercial bank accounts,” Hawkesby said.