New Zealand central bank launches digital cash consultation

On Wednesday, the Reserve Bank of New Zealand began a consultation on digital cash. The consultation document asks citizens of the country to respond to the design of digital cash, whether it should pay interest, and whether there should be holding limits. The central bank is considering a holding limit of $2,000, which is similar to the benchmark for the digital euro. New Zealand began consulting on the future of currency and CBDC in 2021, and said digital currency could bring "opportunities." The 2024 consultation report said that digital cash would provide more choices when making payments, be easy to access and support innovation, and take advantage of new innovative features such as smart contracts. The consultation document also said: "Digital cash can also promote competition in New Zealand's payments sector by supporting new types of money and payment services in the private sector." Digital cash will be distributed by the private sector, and New Zealanders can choose the services they use. In addition, it also stated that New Zealand's CBDC is undergoing a multi-stage, multi-year process, and the country has not yet decided to issue a CBDC. It will be denominated in New Zealand dollars, redeemable 1:1 with physical cash, and available 24 hours a day. The consultation will end on July 26. (CoinDesk)