Reserve Bank of New Zealand President: Proof-of-concept design work for central bank digital currency is starting

On February 8, RBNZ President Orr issued a statement on the RBNZ website, commenting on the future development of the monetary and cash system. He said that the design work for the proof-of-concept design of the central bank’s digital currency is being initiated. This work will take into account public comments received during the consultation. He said it had not yet been decided which form of central bank digital currency would be suitable for New Zealand. A decision must be made on how best to use digital technology to modernize central bank money while ensuring cash is an option for those in need. Central bank digital currencies need to guarantee privacy and be difficult to use for illicit purposes, he said. The emphasis on privacy reflects the fact that the design of central bank digital currencies will be driven by the community rather than specific commercial interests. (Golden Ten)