The Reserve Bank of New Zealand has initiated public consultations on introducing a central bank digital currency (CBDC), aimed at integrating all citizens into the digital economy. The first phase of discussions will last until July 26, after which the bank will decide on progressing to the next development stage.
The CBDC, referred to as “Digital Cash,” is intended to address the decline in the use of physical money and enhance financial inclusion. The central bank observes rapid innovations in crypto assets, distributed ledgers, and digital currencies issued by global technology companies. It believes that if these innovations primarily occur outside of the New Zealand dollar, there is a risk that citizens might choose alternative currencies for transactions, potentially leading to a loss of monetary sovereignty.
The RBNZ plans to complete the current phase by 2026, with the official launch of New Zealand’s CBDC expected by 2030. This move will allow the country to maintain its leadership in innovative payment systems and support the digital transformation of the national economy.
