The Reserve Bank of New Zealand will look at the possibility for a CBDC “to work alongside cash as government-backed money,” and evaluates the issues around the emergence of crypto assets such as stable coins.
The Reserve Bank states a CBDC might be the answer to the on current reduction in the use of cash and that it will look more closely at the use of crypto currencies.
The bank will open up public consultations with regards to CBDC and the introduction of new digital forms of money including stable coins.
In a July 7 announcement, the Reserve Bank revealed it will be releasing a set of “money and cash issues papers for feedback from August to November,” which build upon the “Future of Cash” consultations from 2019.
The reserve bank will introduce and seek feedback on crypto-focused papers that will look at the potential for a Central Bank Digital Currency to work alongside cash as government-backed money along with unspecified issues that arise from innovations in money and payment tech, including crypto currencies such as Bitcoin and stable coins.
NZ’s Reserve Bank appears to be open-minded towards the deployment of a CBDC, but it has emphasized that a measured and cautious approach is required.
