The Reserve Bank of New Zealand has requested public comment on the research and launch of the digital New Zealand dollar, the country’s state cryptocurrency.
The Central Bank of New Zealand has released two discussion papers: The Future of Money – Stewardship and The Future of Money – Central Bank Digital Currency. The regulator wants to receive public feedback by December 6th. Earlier this year, the country’s central bank has already announced plans to study the state cryptocurrency.
“Trends in the use and availability of cash, along with digital innovation, are creating opportunities for innovation,” said Assistant Governor of the Reserve Bank of New Zealand Christian Hawkesby in a press release. “We believe this issue should be discussed with the public.”
The bank said it is studying trends in the use of cash and opportunities for innovation in this area, which allow the Central Bank to consider issuing a digital currency. The regulator also addressed the problem of the growing popularity of stablecoins and stressed that pegging a cryptoasset to the state currency or commodities poses a risk to the sovereignty and domestic economy of the country.
According to the bank, the state-owned cryptocurrency provides a stable anchor of value and the assurance that it can be converted with the country’s official currency, while ensuring a fair and equal payment method in a modern and inclusive economy.
“The digital central bank currency will have the features and benefits of cash that are enjoyed in the digital world. The digital currency will work with cash and money held in commercial bank accounts, ”Hawksby said.
The Deputy Chairman of the Central Bank added that in November the regulator will publish a third document, which will consider more complex options for implementing the concept of a state cryptocurrency to achieve its greater efficiency.
More and more countries are exploring the possibility of issuing their own digital currency. Recently it became known that Ripple and the Central Bank of Bhutan will test the state cryptocurrency. At the beginning of the month, the Central Banks of Australia, Singapore, Malaysia and South Africa also announced that they would test state cryptocurrencies.
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