June 24, 2024

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Key points:

  • The Reserve Bank of New Zealand (RBNZ) has begun a 101-day public consultation on its conceptual and layout options for a national digital currency.
  • The Central Bank released a consultation paper on April 17 on “whether digital cash is suitable for the future of work in New Zealand.”

The Reserve Bank of New Zealand (RBNZ) has begun a 101-day public consultation on its conceptual and layout options for a national digital currency. In subsequent consultations, the central bank intends to discuss the issue of a central bank digital currency (CBDC).

To issue a CBDC, the Bank of New Zealand adopted a four-step process with the goal of issuing an in-house digital currency by 2023. consultation.

consult Paper The Central Bank released a report on “whether digital cash is suitable for the future of work in New Zealand” on April 17.

The consultation paper advocates the adoption of a CBDC, in addition to emphasizing the need to coordinate with other central banks and reduce the use of cash.

“Cash is no longer a core payment medium for many people. New Zealanders are using cash less frequently.

The 12 questions in the consultation document cover four main areas: views on New Zealand’s CBDC, advantages of digital currency, strategy design and managed issuance.

The Bank of New Zealand claims that the introduction of CBDC and a strong support network can encourage innovation in the local payments industry.

Meanwhile, the Federal Reserve Bank of New Zealand is creating other versions of its digital cash consultation paper, which will be available by the end of May.

Andrew Bayly, the New Zealand government’s Minister for Trade and Consumer Affairs, has warned that New Zealand has been slow to experiment and adopt blockchain and digital asset technologies.

Bailey’s office said in response to a question from the Legislative Finance and Expenditure Committee about cryptocurrencies:

“The current ‘wait and see’ attitude may cause New Zealand to miss out on the benefits of the development of the digital asset industry.”

Ministry advisers have made eight key recommendations to help New Zealand get back on the global cryptocurrency wave. The recommendations include developing laws and policies to promote the advancement of blockchain technology and digital assets and encourage greater collaboration between the public and private sectors.

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