New Zealand is in no hurry to issue CBDC

https://www.cryptopolitan.com/new-zealand-no-hurry-to-issue-cbdc/
  • Financial authorities in New Zealand do not plan to issue CBDC.
  • The central bank is broad-minded regarding finance and technologies.
  • Cash is still in demand in New Zealand.

New Zealand financial leaders do not plan to issue a central bank digital currency, or CBDC reports a central bank executive.

The nation down under has “no imminent plans” to do so, says Christian Hawkesby, assistant governor at the Reserve Bank of New Zealand (RBNZ).

In a speech on 19th October, the assistant governor revealed that the bank is open to suggestions regarding finance and payment technologies and has looked into CBDC.

Hawkesby stated the advantages of cash, asserting that they “have so far been not well replicated by electronic money.” Other virtues of visible money include offline backup payments and privacy.

The assistant governor is not alone in his approach. Jay Powell, United States’ Federal Reserve chairman, stated on 19th October that the U.S would not circulate an online dollar until he is fully aware of user security. Plus, cash is still sought-after in the U.S. It is also highly desired in New Zealand, which has seen a rise in its circulation.

Cryptocurrency in New Zealand

Last year, the Pacific nation became the first country to legitimize cryptocurrency wages. The country ordered that the crypto should be able to change into a normal form of payment. However, the decree prohibits the self-employed from changing their earnings to cryptocurrency.

The south hemispherical nation does not have stringent rules on blockchain. Cryptocurrencies are allowed in the country as long as its purpose is legal. According to the Financial Markets Authority, cryptocurrency activities could be deemed financial services. This comes under the “fair dealing” stipulation in the Financial Markets Conduct Act 2013.

New Zealand’s central bank has approved Bitcoin’s use for economic functions, but it is forbidden from issuing visible money.