The Reserve bank of New Zealand (RBNZ) said on Friday it had not yet taken a decision on a potential central bank digital currency (CBDC) but would continue to explore the option.
The RBNZ had announced in September last year that it was seeking input from the public on the potential use of a CBDC – which is the digital form of an existing currency.
Several countries are exploring the use of CBDCs, with the U.S. Federal Reserve releasing a much-anticipated paper on the pros and cons of adopting a digital dollar earlier this year.
The RBNZ said feedback from the public had helped affirm the importance of privacy and autonomy when it comes to a CBDC and that this would be a focus of further policy work.
Our view is that CBDC and cash would be complementary, rather than conflicting, the central bank said in a statement.
Ian Woolford, the RBNZ’s director of Money and Cash, added that the central bank was particularly focused on progressing concrete steps to improve resilience and efficiency in the cash system.