New Zealand Plans to Create a CBDC

New Zealand Plans to Create a CBDC

The Reserve Bank of New Zealand is working on the possibility of combining cash with a digital currency that will also serve as a reserve currency for the government. This will also help them understand the principles of stablecoins.

The Reserve Bank of New Zealand is of the opinion that if it comes up with a CBDC, it can address the lack of interest among the citizens to use fiat money.

For this reason, there is a proposal to meet with the public to hear what they have to say about the emergence of a CBDC and stablecoins.

On July 7, the bank stated that questionnaires would be printed and distributed to the public beginning from August and it will last for 3 months.

The Reserve Bank doesn’t see anything wrong with creating a CBDC but it doesn’t want to rush into the act without hearing from the public.

The second in charge of the bank, Christian Hawkesby,  stated a year ago that there was nothing in store for the creation of CBDC. However, he was only concerned about what his countrymen deemed important.

But that’s now the past as his recent statement confirms that the bank may now utilize the medium to encourage New Zealanders to stick to the country’s currency:

“A CBDC, similar to digital cash, might well be part of the solution, but we need to test our assessment of the issues and proposed approach before developing any firm proposals.”

The deputy governor of the bank also said that even though many of his countrymen use digital currencies, they still find the fiat currency needful for payment of goods and services and even for savings.

Nevertheless, he agrees to the fact that New Zealanders want something new in form of digital currencies and to this end, the bank is working to ensure a smooth transition so long as it helps the country.


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