Fun

Reserve Bank of New Zealand Seeks Public Opinion on Central Bank Digital Currency

News Feed - 2021-10-01 07:10:17

Reserve Bank of New Zealand Seeks Public Opinion on Central Bank Digital Currency


The central bank of New Zealand has lined up among monetary authorities exploring the question of issuing their own digital currencies. The financial regulator is now seeking feedback from the public about the need for a digital form of the national fiat while also promising to preserve cash. New Zealand Central Bank Considers Risks and Benefits of CBDC


Reserve Bank of New Zealand (RBNZ) is now gathering input from the public on the potential use of a central bank digital currency (CBDC), Reuters reported following an announcement released by the bank on Thursday. Assuring that financial authorities are still working “to preserve cash and the cash system for those that need it,” RBNZ Assistant Governor Christian Hawkesby stated: A Central Bank Digital Currency would see the features and benefits of cash enjoyed in the digital world, working alongside cash and private money held in commercial bank accounts.


The high-ranking official elaborated that a CBDC could benefit both individuals and businesses by facilitating the establishment of more efficient and integrated platforms. A digital New Zealand dollar could potentially help protect the country’s monetary sovereignty as well. Hawkesby, who is also the bank’s General Manager of Economics, Financial Markets and Banking, was quoted as saying: As steward we want to ensure that our central bank money remains a stable value anchor for the monetary system and available as a fair and equal way to pay and save – so ensuring that New Zealanders have access to money in forms that suit them and their changing needs.


At the same time, the banker acknowledged that a digital currency would pose certain operational risks, including those of a cybersecurity nature, and impact the traditional financial sector. Hawkesby then emphasized that any decision on launching a CBDC would have to take these factors into careful consideration.


In a paper accompanying the statement, the Reserve Bank of New Zealand pointed to the declining use and acceptance of paper cash in the country, which could be another major motive to mint a national digital coin. The financial institution also highlighted innovations in private money such as the emergence of stablecoins.


Other central banks in the region are already cooperating on the CBDC front. In early September, reports came out that the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank are all preparing to test the use of state-issued digital currencies in international payments. The banks explained that the collaboration aims to develop shared platforms for cross-border transactions using different CBDCs.


The trials are led by the Bank for International Settlements (BIS) Innovation Hub with the goal to establish whether central bank digital currencies can simplify transactions and lower their costs. The Hub heads a similar project between China, Hong Kong, Thailand, and UAE, while it’s also cooperating with Bank of France and the Swiss National Bank to test wholesale digital currencies in cross-border settlements.


Central banking institutions in dozens of countries around the world are currently working to develop and launch CBDCs, with the People’s Bank of China arguably having the most advanced project. The U.S. Federal Reserve, Bank of Russia, and the European Central Bank are also progressing towards issuing their own digital currencies.


Do you think the Reserve Bank of New Zealand will eventually decide to issue a national digital currency? Share your expectations in the comments section below. Dydx Trading Volumes Explode After Latest Chinese Crypto Ban NEWS | 17 hours ago Dogecoin Co-Founder Suggests an Ethereum Bridge to Doge and Compatible NFT Markets NEWS | 19 hours ago Tags in this story Benefits, Cash, CBDC, Central Bank, Central Banks, consultations, costs, digital coin, Digital Currency, feedback, Fiat, fiat money, New Zealand, private money, project, public opinion, RBNZ, Reserve Bank, risks, sovereign currency, stable coins


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

India’s Central Bank RBI Warns Crypto Could Lead to Dollarization of Economy
India"s Central Bank RBI Warns Crypto Could Lead to Dollarization of Economy India’s central bank, the Reserve Bank of India (RBI), has expressed concerns that cryptocurrenc
Defi Project Yfdex.Finance Vanishes With $20M Investors’ Funds Just Two Days After Launch
Defi Project Yfdex.Finance Vanishes With $20M Investors" Funds Just Two Days After LaunchYfdex.Finance (Yfdex), a new liquidity mining pool, has reportedly exit scammed, making off
California senator slams OpenAI’s opposition to AI safety bill
Amaka Nwaokocha1 hour agoCalifornia senator slams OpenAI’s opposition to AI safety billAs the debate over SB 1047 intensifies, Wiener remains steadfast in his support for the bill, which he believes is a necessary step
Finder’s Experts Expect Solana to Surpass $1,100 by 2025, Over $5K by 2030
Finder"s Experts Expect Solana to Surpass $1,100 by 2025, Over $5K by 2030 At the end of October, the product comparison website finder.com published new survey data about price pr
Bitcoin, Ethereum Technical Analysis: BTC Moves Below $40,000, Some Anticipating Drop to $30,000
Bitcoin, Ethereum Technical Analysis: BTC Moves Below $40,000, Some Anticipating Drop to $30,000 After a boost on Tuesday, following the release of U.S. inflation data, bitcoin pri
NFT Weekly Sales Volume Improves Jumping 17% Higher Than the Week Prior
NFT Weekly Sales Volume Improves Jumping 17% Higher Than the Week Prior After cryptocurrency assets jumped in value this week, following the Federal Reserve’s rate hike on W
UAE regulations may lead to crypto payment ban, warns lawyer
Ezra Reguerra13 hours agoUAE regulations may lead to crypto payment ban, warns lawyerUAE lawyer Irina Heaver told Cointelegraph that the policy shift could signal a “less favorable environment” for crypto in the UAE.
Ezra Reguerra26 minutes agoGaming DAO warns users of fake airdrops amid social media hacksThe decentralized game publisher said its team had witnessed a significant rise in phishing attempts within its community and in t
Hong Kong’s in-kind ETF creation could be a significant market opportunity: Analysts
Zoltan Vardai10 hours agoHong Kong’s in-kind ETF creation could be a significant market opportunity: AnalystsHong Kong aims to enable in-kind creations and redemptions for spot Bitcoin ETFs in the second quarter.1743 T
Derek Andersen6 hours agoSEC claims Ceffu wallet provider is ‘Binance-related’ in motion against BAMThe securities regulator claims that Ceffu is a Binance entity and not merely a digital asset wallet provider.2024 T
Here Are Some Fun Things to Do With Bitcoin Cash
Here Are Some Fun Things to Do With Bitcoin Cash The best use for any currency would be to spend it on things you need or even better, enjoy. And spending has to be easy and inex
Crypto exchanges to meet Nigerian SEC chief for regulatory talks
Amaka Nwaokocha14 hours agoCrypto exchanges to meet Nigerian SEC chief for regulatory talksThe meeting is expected to ignite positive changes that benefit all crypto stakeholders in Nigeria and internationally.1607 Total