The Reserve Bank of New Zealand (RBNZ) has initiated the second stage of its public consultation for a proposed Central Bank Digital Currency (CBDC), running from April 17 to July 26. This consultation will help shape the potential introduction of "Digital Cash," a retail-focused digital currency aimed at enhancing financial inclusion and innovation. The move addresses the declining use of physical cash, with a significant drop from 63% in 2021 to 58% in 2023. The RBNZ is exploring this initiative to maintain monetary sovereignty and stimulate payment system innovation, with a decision on the next steps expected post-consultation.
