The central bank expects that the digital New Zealand dollar will transform the credit and monetary system by introducing a digital version of cash. The popularity of state-backed stablecoins is growing worldwide—many central banks are conducting research on this topic, actively testing CBDCs, and some central banks have already launched their own digital currencies.
The Reserve Bank is ready to implement the digital New Zealand dollar, offering the country’s citizens flexible payment options. Access to government-backed digital currency will be available not only to individuals but also to legal entities. Unlike traditional payment methods, using the digital dollar will not require having an account with a commercial bank, and CBDC users can expect privacy, promises the central bank.
During public consultations, interested parties will be able to submit their ideas and comments to the regulator, which officials promise to consider in the development of the digital dollar. The government plans to reduce the use of paper money but is not aiming for fully cashless transactions. The multi-stage study of the digital dollar will continue until approximately 2030, clarified the central bank.
Recently, New Zealand’s Minister for Trade and Consumer Affairs, Andrew Bayly, called on the government to be more receptive to cryptocurrencies, so the country could become a center for crypto industry development.