The Reserve Bank of New Zealand will explore the potential for a central bank digital currency (CBDC) as part of a series of consultations to be carried out by the end of the year.
- The central bank aims to consult on the “issues key to the future of how New Zealanders pay and save,” Christian Hawkesby, assistant governor of the Reserve Bank of New Zealand, the country’s central bank, said Wednesday.
- One paper will explore the potential for a CBDC working alongside cash as a form of government-backed money.
- “The future will undoubtedly involve less cash,” Hawkesby said. “The potential for a CBDC to help address some of the downsides of reducing physical cash use is something we want to explore.”
- Other papers will focus on issues arising from cryptocurrency and stablecoins.
- New Zealand’s central bank joins its counterparts in the world’s major economies in exploring the potential for a CBDC, with China leading the way. South Korea and Sweden both appear to have moved from exploration to testing in recent months.