[Blockchain Today Reporter Jihye Han] ‘Digital Cash’, the digital currency (CBDC) of the Reserve Bank of New Zealand (PBNZ), is scheduled to be introduced.
According to Crypto News on the 17th (local time), PBNZ announced that it has begun public consultation on central bank CBDC in a consulting document released on the same day.
This consultation will be held for 101 days until July 26th in the second stage. After feedback and business case development in stage 2, a decision is made as to whether to proceed to stage 3.
According to the consulting document, New Zealand's Digital Cash will be a retail-focused CBDC targeting primarily consumers and business users. The central bank cited the decline in the use of physical cash as a motivation for issuing CBDC.
The consulting document also included a survey that found that around 58% of consumers used physical cash as of 2023, down from 63% recorded in 2021, indicating that fiat usage is gradually decreasing.
RBNZ has adopted a four-step approach to creating digital cash. The first phase began in 2021 and included issuing a questionnaire assessing the need for digital cash in New Zealand. RBNZ received over 6,000 responses, indicating high public interest.
The RBNZ is currently in the second phase of its CBDC initiative, which will involve delving deeper into design options for digital cash, conducting consultations and setting out a budget framework.
Following the consultation phase, the RBNZ will continue to develop the structure and policy requirements, with an expected completion date of June 2025. After this step, a cost-benefit analysis will be performed.
The RBNZ plans to complete phase 2 in 2026. At this point, a recommendation will be made on whether to proceed to stage 3 of the New Zealand CBDC issuance process.
Phase 3 involves developing and testing a prototype to ensure the functionality of the digital cash system. The final phase, Phase 4, will mark the official launch of New Zealand's CBDC and is expected to take place by 2030, CryptoNews predicted.
hjh@blockchaintoday.co.kr
