New Zealand Central Bank has begun exploring options and is asking the public to launch its own digital currency.
The financial regulator is now receiving feedback from residents about the need for a digital form of the national fiat currency, while promising to preserve cash.
The central bank is considering innovation
New Zealand Reserve Bank (RBNZ) began to gather information and public opinion on the potential use of the central bank’s digital currency (CBDC). RBNZ senior Christian Hawkesby says New Zealand’s financial authorities will continue to work to preserve cash for those who need it.
“Digital currency could bring many conveniences and various benefits. The digital world is coming, so we plan to work with clients’ cash and money, which they protect on commercial bank accounts.
Hawkesby clarified that digital currency could benefit both individuals and businesses by creating more efficient and integrated platforms. New Zealand Digital Dollar (NZD) could potentially help protect the country’s monetary sovereignty.
New Zealand may be next in line
Other central banks in the region have been working on their own for a long time digital currency. In early September, there were reports that the Australian Reserve Bank, the Central Bank of Malaysia, the Monetary Authority of Singapore and also the Central Bank of Bhutan were preparing to test and use digital currencies issued by the state in international payments. The banks explained that the aim of the cooperation is to develop common platforms for foreign transactions using digital currencies.
Bank for International Settlements (BIS) is testing these platforms to see if central bank digital currencies can really simplify transactions and reduce costs. Such projects are being tested by countries such as China, Hong Kong, Thailand and the United Arab Emirates.
The fact is that digital currencies are growing in popularity in many countries. Of all the banks, China’s central bank has the greatest ambitions. It is followed by Americans, Russians and, of course, Europe does not lag behind with the European Central Bank, which is working on the digital euro.