The Reserve Bank of New Zealand (RBNZ) has announced its plans to introduce a digital version of the New Zealand dollar, stating that it will provide universal access to central bank money in both physical cash and digital form. Currently, New Zealanders only have access to physical cash as a form of central bank money. The RBNZ aims to address this limitation by offering a digital alternative that meets the needs of all residents, ensuring the certainty and safety of using digital cash.
In a consultation paper released on April 17, the RBNZ emphasized the importance of differentiating its digital dollar from volatile crypto assets issued by private entities. The RBNZ highlighted that while cryptoassets are not denominated in New Zealand dollars and can pose risks to the economy and monetary sovereignty, the digital version of the New Zealand dollar will be government-backed and denominated in the local currency. This ensures that the RBNZ can maintain its monetary sovereignty and confidence in the country's monetary system.
To ensure that the digital version of the New Zealand dollar meets the requirements and preferences of New Zealanders, the RBNZ is seeking input from residents. They can participate in the process by taking an online survey or submitting a written document outlining the features they would like to see in the digital currency.
The RBNZ's proposal for a digital dollar aims to provide a secure and accessible form of central bank money that complements physical cash. It seeks to offer universal access to central bank money, allowing all residents to benefit from the advantages of digital transactions. The RBNZ invites individuals to share their thoughts and opinions on this initiative in the comments section below.