The Reserve Bank of New Zealand (RBNZ) released two issues papers on Thursday (Sept. 30) that outline the central bank’s thoughts about the pros and cons of circulating a central bank digital currency (CBDC), and is seeking public input before crafting a more specific blueprint.
Rather than go into specifics regarding a framework, the RBNZ’s papers offers a narrative that highlights the costs, benefits, risks and opportunities that could be afforded by the issuance of a CBDC. It’s considered a “starting point for a conversation” on the possible function of a CBDC for the country.
See also: BoE Enlists Payments, FinTech Firms to Study CBDC
“Commercial banks, the wider cash industry and Te Pūtea Matua (the Reserve Bank) need to seize opportunities and innovate to ensure that the cash, money and ways to pay continue to serve New Zealanders’ needs,” RBNZ Assistant Governor Christian Hawkesby said in a press release following the dissemination of the two issues papers.
He added that the bank is asking the public to weigh in on how the RBNZ should proceed in its “role as steward of money and cash” and how it should evaluate the conditions for “central bank money in a digital form alongside cash.”
Read more: Central Bank Digital Currencies Can Cut Cross-Border Transaction Time
Hawkesby, who also serves as the reserve bank’s general manager of economics, financial markets and banking, said that as steward, the RBNZ wants to make sure that its “central bank money remains a stable value anchor for the monetary system.”
He further added that it wants to offer New Zealanders the flexible options of getting their money in a way that fits their “changing needs” and keeps New Zealand in a position of keeping “its monetary sovereignty.”
The RBNZ is seeking public input on the papers until Dec. 6 and said it would release more detailed guidelines of the next steps by the end of April 2022.
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