New Zealand Starts Digital Cash Consultation

The consultation paper asked its citizens to respond on the digital cash design, whether or not interest should be paid and if there should be holding limits.

AccessTimeIconApr 18, 2024 at 9:41 a.m. UTC
Updated Apr 18, 2024 at 4:32 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now
  • New Zealand launched a consultation on its digital cash on Wednesday.
  • The country's central bank believes digital cash could support innovation.

The Reserve Bank of New Zealand started a consultation on digital cash on Wednesday.

The consultation paper asked citizens in the country to respond on digital cash design, whether or not interest should be paid and if there should be holding limits. The central bank is considering a $2000 holding limit, which is similar to the digital Euro’s benchmark.

Central banks around the world have been exploring issuing their own digital currencies, otherwise known as central bank digital currencies (CBDCs), following the rise in popularity of crypto over the last couple of years.

New Zealand started consulting on the future of money and CBDCs in 2021 and said then that a digital currency could present an “opportunity." The 2024 consultation said that digital cash would give more choice when making payments, be easy to access and support innovation and take advantage of new innovation features like smart contracts.

“Digital cash could also boost competition in New Zealand’s payments landscape by supporting new types of money and payments services from the private sector,” the consultation paper said.

The digital cash would be distributed by the private sector, and New Zealanders get to choose which services they use.

New Zealand’s CBDC is undergoing a multi-stage and multi-year process, and the country has not decided to issue one yet, the consultation paper said. It would be denominated in New Zealand dollars, swappable 1:1 with physical cash, and would be available 24/7.

The consultation closes on July 26.

Edited by Parikshit Mishra.


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.

Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

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.