join the effort, with the central bank now seeking feedback from the public regarding the possibility of issuing their own CBDC.
“The potential for a Central Bank Digital Currency to help address some of the downsides of reducing physical cash use and services is something we want to explore for New Zealand,” said Christian Hawkesby, RBNZ’s assistant governor and general manager of economics, financial markets and banking, said in a statement. “A CBDC, similar to digital cash, might well be part of the solution, but we need to test our assessment of the issues and proposed approach before developing any firm proposals.”
Under the first phase of consultation, the central bank will seek feedback regarding money and cash. Subsequently, they will be requested to look at the potential for a CBDC, while considering the drawbacks of new electronic money forms. The consultation is expected to last until November. According to RBNZ, a majority of New Zealanders prefer digital forms of payment over the use of fiat money and many are preparing for a future that will involve less cash.
