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New Zealand Puts Central Bank Digital Currency Plan on Hold

The RBNZ said feedback from the public had helped affirm the importance of privacy and autonomy and that this would be a focus of further policy work


New Zealand
The RBNZ said feedback from the public had helped affirm the importance of privacy and autonomy when it comes to a CBDC and that this would be a focus of further policy work. Photo: Reuters.

 

New Zealand’s central bank said on Friday it had not yet taken a decision on creating a central bank digital currency (CBDC) but would continue to explore the option.

The Reserve Bank of New Zealand (RBNZ) had announced in September last year that it was seeking input from the public on the potential use of a CBDC – which is the digital form of an existing currency.

Several countries are exploring the use of CBDCs, with the US Federal Reserve releasing a much-anticipated paper on the pros and cons of adopting a digital dollar earlier this year.

The RBNZ said feedback from the public had helped affirm the importance of privacy and autonomy when it comes to a CBDC and that this would be a focus of further policy work.

“Our view is that CBDC and cash would be complementary, rather than conflicting,” the central bank said in a statement.

Ian Woolford, the RBNZ’s director of money and cash, added that the central bank was focused on improving resilience and efficiency in the cash system.

 

  • Reuters, with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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