The Reserve Bank of New Zealand (RBNZ) has kicked off a 101-day public consultation on the principles and blueprint for the nation's digital currency. However, they've opted to save discussions on actually issuing a central bank digital currency (CBDC) for future rounds of consultations.
Their plan for rolling out a digital Kiwi dollar involves four stages, aiming to introduce an in-house digital currency by 2023. Right now, they're in the second phase, delving into advanced design options and considering how it'll mesh with cash usage and budgeting. The central bank just released a consultation paper on April 17 to gather input on whether digital cash is the way forward for New Zealand's workforce. The consultation runs until July 26.
The paper advocates for embracing CBDCs while acknowledging the dwindling use of physical cash and the need to sync up with other global central banks. It points out that fewer folks are relying on cash for day-to-day transactions. They're asking for input on 12 questions across four main areas: personal views on the CBDC, the perks of digital cash, strategic design considerations, and how to manage its release. RBNZ believes that launching a CBDC, backed by robust infrastructure, could spark innovation in the local payments scene.
Meanwhile, the Reserve Bank is also working on a different version of the digital cash consultation paper, set to come out by the end of May. Andrew Bayly, New Zealand's Minister for Business and Consumer Affairs, recently cautioned about the nation lagging behind in adopting digital assets and blockchain tech. His office highlighted the risk of missing out on the growth potential of the digital asset industry with a "wait and see" approach. In response, the ministry proposed eight recommendations to get New Zealand back in sync with the global crypto trend, suggesting policies to nurture digital asset development and fostering collaboration between the government and industry players.
