The Reserve Bank of New Zealand is currently looking into the possibility of launching a central bank digital currency (CBDC), also known as “digital cash.” This exploration is in response to the evolving landscape of money and payments, which is posing challenges to New Zealand’s monetary sovereignty. Ian Woolford, the Reserve Bank director of money and cash, highlighted the potential benefits of digital cash, such as enhanced privacy, security, and trust for users. The central bank envisions digital cash coexisting with physical cash options and being accessible through a digital wallet, payment card, or mobile app. Woolford also mentioned that digital cash transactions could be conducted via Bluetooth, allowing for offline payments during emergencies or power outages.

The consultation period for shaping the high-level design of digital cash will continue until July 26, 2024, as part of a multi-stage exploration expected to last until around 2030. This process includes ongoing opportunities for public engagement. The decision to explore digital cash was influenced by comments from Adrian Orr, the governor of the Reserve Bank of New Zealand, who expressed skepticism towards stablecoins as potential replacements for traditional currencies. Orr emphasized the instability of stablecoins during a parliamentary finance committee meeting in February.

Overall, the Reserve Bank of New Zealand’s exploration into launching a central bank digital currency reflects the evolving landscape of digital payments and the need to adapt to changing financial technologies. Stay updated on the latest news and developments in the world of cryptocurrencies and finance on Global Crypto News.

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