The Reserve Bank of New Zealand’s public consultation on a central bank digital currency (CBDC) has shown that New Zealanders lack enthusiasm. Out of 500 written submissions and 18,000 survey responses, over 70% deemed a CBDC, or “digital cash,” unimportant. Only 16% agreed with the bank’s reasons for introducing it, such as ensuring digital access to central bank money and promoting innovation.
Most participants were worried about security, privacy, and the necessity of such a system. 65% had no interest in features like automated payments and real-time balance tracking. 90% were mainly concerned about potential government control, fearing reduced privacy and increased traceability. Many also saw cryptocurrencies like Bitcoin and Ethereum as having advantages and were unconcerned about their impact on the NZ dollar. Some considered stablecoins an alternative, though the RBNZ governor disputes this.
To handle these concerns, the Reserve Bank will focus on privacy and autonomy research, using legislative, cultural, or technological means. The consultation, which ran from April 17 to July 26, 2024, aimed to explore digital cash’s future. The central bank had assured that it wouldn’t control or monitor spending. Digital cash was proposed to coexist with physical cash, using digital wallets, cards, or apps and enabling offline Bluetooth transactions.
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