Following China’s announcement of launching central bank digital currency ‘digital-yuan’, many countries have started adopting the CDBC technology. So far, countries like Sweden, Bahamas, and the Marshall Islands have launched their own central bank digital currency.
Even Russia has plans to launch its own central bank digital currency and already passed DFA law to govern the technology. The country has plans on launching its digital-rubbles’ pilot backed by the Russian central bank in the year 2021.
While the CDBC adoption has been spreading across the world like a chain-reaction, the Kiwis seem least concerned. Just recently, an executive of the New Zealand central bank released a statement around the CDBC adoption. The executive stated that the New Zealand government is currently in no hurry to adopt the digital-NZ dollar.
The New Zealand’s Reserve Bank’s assistant governor, Christian Hawkesby was the one who released the statement. He also stated that neither the government is in a hurry nor it currently has any future plans for the CBDC.
While delivering a speech last Monday, the governor stated that the New Zealand central bank has completely dropped the CDBC idea. He clarified that the bank is open-minded and optimistic around the CDBC technology. It has also participated in the research and testing programs related to CDBC. However, the central bank currently has no plans for adopting the CDBC technology.
Christian Hawkesby also talked about traditional paper money (cash). He highlighted the benefits and uses that the cash money has to offer to the users. He mentioned that digital currency is not a new thing but has been in play for more than two decades. Even then, it has not been able to replicate cash money let alone overcome it.
While talking about the benefits of cash money, Christian pointed to a few major uses of paper money.
He pointed out that with paper money the users are able to do autonomy payments and savings, legal money tender, and in-person emergency offline backup payments and settlements.
Christian also stated that the NZ central bank would feel the need to switch to CDBC if it says much public demand. For now, the vast majority of the NZ public strongly prefers cash over digital-money.