The Reserve Bank of Zealand has said the proposed digital version of the country’s physical cash would provide universal access to central bank money, either in physical cash or digital form. According to the central bank, the digital version will not only be government-backed but will also be denominated in the local currency.
Reserve Bank of New Zealand Releases Digital Currency Consultation Paper
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Universal Access to Central Bank Money
The Reserve Bank of New Zealand (RBNZ) has said it is considering launching of a digital version of the country’s physical cash. The RBNZ stated that this digital version of the New Zealand dollar would provide universal access to central bank money, either as physical cash or in digital form.
In a consultation paper released on April 17, the RBNZ noted that New Zealanders currently only have access to the physical form of central bank money. The RBNZ, promoting the proposed digital version of the New Zealand dollar as a solution that meets everyone’s needs, expressed its desire for the “certainty and safety” of using digital cash to be accessible to all residents.
We’re looking at introducing a new payment option for New Zealanders – Digital Cash – an electronic version of cash, that would sit alongside but not replace physical cash. Learn more in the video and have your say here: https://t.co/FcRyY69TPI pic.twitter.com/Je4q3Q9IE6
— Reserve Bank of NZ (@ReserveBankofNZ) April 16, 2024
In the consultation paper, the RBNZ also attempted to differentiate between the digital version of its dollar and volatile crypto assets issued by private entities.
“Some other forms of digital money, like cryptoassets, are not denominated in New Zealand
dollars. If a lot of people use them, it can pose a risk to our economy, the New Zealand dollar, and our monetary sovereignty. Monetary sovereignty is important because it means that New Zealand can independently manage its money, set interest rates, and make decisions without being overly influenced by external forces,” the RBNZ said.
According to the central bank, the digital version will not only be government-backed but will also be denominated in the local currency. This allows the Reserve Bank of New Zealand to maintain its monetary sovereignty and confidence in the country’s monetary system.
Meanwhile, the central bank has expressed its desire for New Zealanders to identify features they would like to see in the digital version of the New Zealand dollar. Residents can participate in this process by taking an online survey or submitting a written document.
Do you agree with the Reserve Bank of New Zealand’s assertions about its proposed digital dollar? Let us know what you think in the comments section below.
