New Zealand’s Reserve Bank Seeks Public Input on Digital Dollar Before December Deadline

The bank said in its papers that it sees trends in the use of cash which “present an opportunity” to consider broadening central bank money.

AccessTimeIconSep 30, 2021 at 4:48 a.m. UTC
Updated May 11, 2023 at 3:53 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Reserve Bank of New Zealand is seeking public input over how it should assess the way the country’s digital dollar can be used.

Two discussion papers titled “The Future of Money – Stewardship” and “The Future of Money – Central Bank Digital Currency,” released Thursday, are aiming to solicit public feedback before a Dec. 6 deadline. The bank announced it would begin discussions with the public earlier this year.

“Trends in cash use and availability along with digital innovation create opportunities to innovate,” RBNZ Assistant Governor Christian Hawkesby said in a press release Thursday. “We believe these should be discussed widely and our consultations aim to encourage that.”

The bank said in its papers that it sees trends in the use of cash and innovation in money which “present an opportunity” for the bank to consider broadening central bank money to include a widely available digital form. Central bank digital currencies (CBDC) are often touted as a means to increase financial inclusion while enhancing security. Several countries in the Caribbean have already begun using CBDCs to facilitate payments, increase liquidity and boost financial inclusion.

The RBNZ also took aim at stablecoins by treading the well-worn narrative that pegged cryptos to government currencies or commodities pose a risk to its sovereignty and domestic economy.

China is the world’s largest economy developing a CBDC, with plans to implement and experiment with foreign visitors during the Winter Olympics in Beijing in February.

Though CBDCs are not without their own inherent risks which, some argue, provide central banks with increased control over citizens’ financial rights while negatively impacting competition.

Still, the reserve bank argues a CBDC ensures a stable “anchor” of value and provides confidence that is convertible with the country’s existing money while ensuring a “fair and equal way to pay” in a “modern and inclusive economy.”

“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,” said Hawkesby.

The assistant governor said the RBNZ will release a third paper in November exploring “high-level options to achieve greater efficiency and resilience.”


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sebastian Sinclair

Sebastian Sinclair is a CoinDesk news reporter based in Australia.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about