Testing Digital Cash in New Zealand

The Reserve Bank of New Zealand (RBNZ) has begun a 101-day public consultation on the principles and design options for the country’s digital currency. Discussions on the issuance of a central bank digital currency (CBDC) will take place in future consultations. The RBNZ plans to issue its own digital currency by 2023 and is currently in the second stage of its digital cash initiative. This stage involves exploring design options and consulting on the project. The central bank released a consultation paper on April 17 to gather opinions on whether digital cash is suitable for New Zealand. The paper emphasizes the declining use of cash and the need to align with other central banks. It asks 12 questions on topics such as personal opinion, benefits, strategic design, and managed issuance of a CBDC. The RBNZ believes that implementing a CBDC, along with a robust infrastructure, can drive innovation in the local payments sector. The consultation period closes on July 26. The RBNZ is also working on alternative formats for the consultation paper, to be released in late May.

Andrew Bayly, the minister of commerce and consumer affairs of New Zealand, has expressed concern about the country’s slow approach to adopting digital assets and blockchain technology. In response to inquiries by the parliamentary Finance and Expenditure Committee, Bayly’s office warned that New Zealand could miss out on the benefits of developments in the digital asset industry by adopting a “wait and see” approach. The ministry has made eight recommendations to encourage the adoption of policies and regulations that support the development of digital assets and blockchain technology. These recommendations also call for greater collaboration between the government and industry players.

The RBNZ’s consultation on the digital dollar is part of a four-stage process to explore the issuance of a CBDC. The central bank aims to issue its digital currency by 2023. The current stage involves consulting with the public and exploring design options. The consultation paper highlights the declining use of cash and the need to align with other central banks in adopting digital currencies. It poses 12 questions on various topics related to a CBDC. The RBNZ believes that launching a CBDC, accompanied by a strong infrastructure, can drive innovation in the payments sector. The consultation period will end on July 26, and the RBNZ is working on alternative formats for the paper.

New Zealand’s minister of commerce and consumer affairs, Andrew Bayly, has warned of the country’s slow approach to adopting digital assets and blockchain technology. His office has highlighted the risks of missing out on the benefits of the digital asset industry by taking a “wait and see” approach. As a result, the ministry has made eight recommendations to accelerate development in the field, including adopting policies and regulations that support digital assets, promoting collaboration between the government and industry players, and encouraging innovation.

The RBNZ has opened a consultation to gather feedback on the principles and design options for New Zealand’s digital currency. The central bank aims to issue its own digital dollar by 2023 and is currently in the second stage of the process. The consultation paper emphasizes the declining use of cash and seeks to align with other central banks. It asks 12 questions on topics related to a CBDC. Andrew Bayly, the minister of commerce and consumer affairs, has raised concerns about the country’s slow adoption of digital assets and blockchain technology. His office has recommended measures to promote development in this area.