Central Bank of New Zealand Considers Issuing CBDC, Seeks Public Opinion

The central bank of New Zealand has reportedly joined in on a new trend, where most monetary authorities are considering issuing their own digital currencies. And now, the financial regulator is seeking public opinion regarding the need for a digital form of the national fiat, if there is any.

As Central Bank of New Zealand Weighs The Risks and Benefits of CBDC

Since indicating its interest in the prospects of the use of central bank digital currency (CBDC), the Central Bank of New Zealand has started gathering feedbacks from the public to finally arrive at a decision.

According to Reuters’ report, the central bank of New Zealand made an announcement through its assistant governor, Christian Hawkesby on Thursday. In the announcement, the high ranking official noted that the CBDC is only a digital continuation of what is already being enjoyed as traditional cash. That it will work alongside cash, and other private funds being held in commercial banks.

While the benefits of a CBDC cannot be overemphasized, Hawkesby also acknowledged the fact that a digital currency doesn’t come without some certain operational risks of its own.

According to the banker, any decision on launching a CBDC must carefully put into consideration, all of the risks and benefits.

In a paper accompanying the statement, the apex bank in New Zealand highlighted the ever reducing use of paper cash in the country, giving rise to the urgent need to mint a national digital coin.

Most central banks in the world are already moving fast with their CBDC decisions. Recall that in early September, there were reports that the Reserve Bank of Australia, South African Reserve Bank, the Monetary Authority of Singapore, and Bank Negara Malaysia, all are geered towards testing the use of state-issued digital currencies in international payments. The banks explained what the collaboration was all about;  to create a group platform where cross-border transactions can take place using different CBDCs.