New Zealand financial authorities have been slow to issue a central bank digital currency, or CBDC, according to the head of the central bank.
Christian Hookby, assistant governor of the Reserve Bank of New Zealand, said the country “has no immediate plans” to issue a central bank digital currency.
In his speech on 19 October, Huxby said that the bank is still open to further advances in money and payment technology and is actively participating in CBDC research. He said:
“In order to issue a currency that satisfies the needs of the population, we must take a new and comprehensive approach. We understand that there is still a lot of work to be done. We do not yet have answers to all the questions, and we hope not to find them on our own. However, work with us. New Zealand, we want to be “for the money” now and in the future. ”
The Assistant Governor of the Reserve Bank of New Zealand also highlighted a number of benefits of cash, saying that “electronic money has not yet been replicated well.” These benefits include legal tender, instant personal settlement, offline emergency backup payment and the privacy and independence of savings and payments, Hawksby said.
Hawksby’s statement reflects recent comments from Jerome Powell, chairman of the US Federal Reserve. Powell said Oct. 19 that the United States will not issue a digital dollar until the Federal Reserve answers all questions about a potential digital currency, including users’ privacy and security. “The central bank’s digital currencies are one of the challenges where getting things right is more important than being the first for the United States,” Powell said, emphasizing that there is still a strong demand for cash in the country.
Huxby also emphasized that despite the decline in the use of transactions, the country’s cash circulation continues to grow. “Maybe this is because they are useful to someone as a store of value,” he said.