New Zealand Starts Digital Cash Consultation
The Reserve Bank of New Zealand has initiated a consultation on digital cash, seeking public opinion on its design, interest payment, and holding limits. The bank is contemplating a $2000 holding limit, mirroring the digital Euro's standard. The consultation follows a global trend of central banks exploring the issuance of their own digital currencies (CBDCs) in response to the growing popularity of cryptocurrencies. The bank began consultations on CBDCs in 2021, recognizing the potential opportunities they could offer. The proposed digital cash would enhance payment options, support innovation, and potentially boost competition in the country's payments landscape. The digital cash would be distributed by the private sector and denominated in New Zealand dollars, exchangeable 1:1 with physical cash. The consultation will close on July 26.
