“Digital Cash” CBDC In-Market by 2030 – RBNZ
(18 April 2024 – New Zealand) The Reserve Bank of New Zealand (RBNZ) has commenced a public consultation on the formulation of a central bank digital currency (CBDC) titled ‘digital cash’.
If the NZ government decided to issue digital cash, it would become an electronic version of physical cash released by the central bank backed by the government and available to the public but importantly it would not replace physical cash.
The RBNZ plans to finish consultation by June 2025 then in 2026 the RBNZ will decide whether to develop and test prototypes for 2028 until release in 2030.
“Risks abound in most schemes for any CBDC, whatever the jurisdiction though very, very few countries have taken the plunge. Bahamas, the Eastern Caribbean Central Bank, Jamaica, Nigeria and the UAE have launched central bank digital currencies that are still in circulation” commented Ian Rogers for Banking Day.
“We are calling this ‘digital cash’. It would be a new type of money in addition to the banknotes and coins we have today, and the electronic money in your bank account. It would be the first digital form of New Zealand currency backed by the government and available to the public” commented RBNZ Director of Money and Cash Ian Woolford.
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