New Zealand’s central bank starts consultations on Bluetooth-friendly CBDC

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The Reserve Bank of New Zealand is looking into the possibility of issuing its own digital currency as legal tender, with research expected to continue until around 2030.

The Reserve Bank of New Zealand is currently considering the implementation of a central bank digital currency (CBDC), or “digital money,” in response to advancements in money and payment systems that could potentially impact New Zealand’s control over its monetary policies, as expressed by Ian Woolford, the Reserve Bank’s director of money and cash.

In a statement on April 17th, the central bank announced that digital money would be an alternative to physical currency, allowing users to transact without needing a commercial bank account. Instead, they would only require a digital wallet, payment card, or mobile app. Woolford highlighted the benefits of digital cash, explaining that it would boost privacy, security, and trust for individuals, with the central bank having no access or oversight into how users spend their funds.

“Bluetooth functionality would allow for transactions without requiring an internet connection. This feature comes in handy during emergencies or power outages.”

Ian Woolford

The first stage of developing the blueprint for digital currency will continue until July 26, 2024, as stated in the press release. This is just the beginning of a longer process that may last until around 2030. Throughout this journey, there will be chances for the public to provide input and be part of the conversation.

After hearing criticisms from Adrian Orr, the governor of New Zealand’s Reserve Bank, who questioned the stability and ability of stablecoins to replace traditional currency during a parliamentary finance committee meeting in February, there are plans to investigate digital cash instead. Orr referred to stablecoins as “misnomers” and “oxymorons” due to their perceived instability.

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2024-04-17 14:28