New Zealanders Express Disinterest in Central Bank Digital Currency
The citizens of New Zealand have expressed their disinterest in a central bank digital currency (CBDC). This sentiment emerged from the Reserve Bank of New Zealand's (RBNZ) public consultation, revealing that most New Zealanders consider CBDC unimportant.
The consultation garnered a record response, with 500 written submissions and over 18,000 online survey responses, three times more than in 2021.
Survey findings indicated over 70% of respondents view cash in digital form as unimportant, and over 80% are concerned about losing access to traditional cash. Only 16% supported RBNZ’s rationale for introducing CBDC.
A significant concern regarding digital cash is potential government control. Many worry it could lead to increased traceability by authorities and reduced privacy, influenced by skepticism toward public institutions stemming from experiences during the COVID-19 pandemic. RBNZ noted:
“The main concern about Digital Cash for New Zealanders (90%) was the potential for government control. Respondents were clearly concerned about the implications of Digital Cash for traceability, and by extension privacy and autonomy.”
Stakeholder Support Shows Potential Benefits
In contrast, stakeholders in fintech and crypto-asset sectors showed more support for a digital cash system. They highlighted benefits of crypto-assets like Bitcoin, which have fixed supplies and resist central authority control. Stablecoins were also mentioned as a stable alternative without direct reliance on central bank money.
RBNZ Plans for Seamless Transition and Privacy Protections
The RBNZ is focused on ensuring smooth transitions between digital and physical cash, developing systems for easy and affordable conversions to maintain compatibility with existing cash frameworks. RBNZ stated:
“We are working on ways to make sure Digital Cash can integrate seamlessly with physical cash, including how to enable easy and low- or no-cost conversions of Digital Cash to cash, and vice versa.”
Feedback from this consultation will inform the next steps and the proposal for Digital Cash, with plans to present a business case to the government by 2026. Issues identified in the survey will shape the end-user strategy, emphasizing privacy and autonomy through legislative, cultural, and technological approaches.