Public Lukewarm on New Zealand CBDC

The Reserve Bank of New Zealand (RBNZ) has published the results of its consultation on a possible CBDC. The consultation had the highest response rate of any RBNZ survey, with more than 500 individuals and groups writing in, as well as 18,000 online survey responses.

The rationale given by RBNZ for a CBDC is to address the limited choices New Zealanders have to pay, and the lack of competition and innovation in money and payments markets.

The goal of a digital format for cash is to give people the combined benefits of both cash and digital payments in one product that is fast, direct, offline and secure.

Survey findings

1.Importance of cash

RBNZ has stated clearly that it will ensure people can access, use, and bank cash as they need or prefer. One finding of this survey was just how crucial cash is to New Zealanders - 84% of respondents were worried about losing access to banknotes and coins (physical cash) and wanted assurance that cash will still be issued and not reduced.