Central Bank of New Zealand: Exploring the potential of CBDC and cash coexistence and the challenges posed by cryptocurrencies

According to Scoop news, Christian Hawkesby, deputy governor of the Bank of New Zealand, confirmed on Wednesday that the bank will publish a series of papers from August to November to solicit feedback on future payment and storage issues related to CBDC, cryptocurrencies and stablecoins. He said the Bank of New Zealand needs to consider how to build a resilient and stable cash and currency system, and how to best respond to digital innovations in currency and payments. Some of these papers will focus on exploring the potential of CBDC and cash to coexist, as well as the challenges posed by new forms of electronic money such as encrypted assets (such as BTC) and stablecoins (such as projects led by Facebook), and whether it is necessary to reform the cash system to Continue to meet the needs of users. He said that although the use of cash in New Zealand has decreased, the existence of cash is conducive to financial inclusion, can give everyone the autonomy and choice of payment and storage, and help promote trust in the banking and financial system. But the reduction in the number of banks and ATM machines may weaken this promise. The Bank of New Zealand hopes to help solve the problems caused by the reduction of cash usage and services by exploring CBDC.