The concept of Central Bank Digital Currency has caught the attention of most governments lately. Even Japan is making plans about how she would have a “clearer picture” of her digital currency by late next year.
Following suit, the Reserve Bank of New Zealand is widely consulting about how digital currency can ameliorate the downsides of fiat.
At the moment, the Reserve Bank does not have a “firm proposal” regarding CBDC. However, the Reserve Bank views that having a CBDC might be part of the solutions to go as cashless as possible.
“We also know that digital forms of payment are the preferred way of paying for the majority of us, and that the future will undoubtedly involve less cash. Our job is to ensure that these transitions work for all New Zealanders,” remarked Christian Hawkesby who is the Assistant Governor of the Reserve Bank.
Therefore, the Reserve Bank will be releasing some monetary research papers on this issue subsequently and will be expecting brilliant feedback on them.
According to Christian, this consultation is public. That is, they expect individuals or stakeholders who have thoughtful and practical opinions on this matter to contact them accordingly.
The consultation is in different stages. Foremost, the Reserve Bank will like to have a broader conceptual approach to money, and streamline topics “to be covered in the rest of the series”.
The results derived from the first consultation topic will determine the direction of the Reserve Bank’s approach and decisions.