Recent feedback gathered by the Reserve Bank of New Zealand (RBNZ) indicates that the majority of New Zealanders aren’t particularly eager for a central bank digital currency (CBDC). Released on December 10, the consultation findings included responses from 500 written submissions and over 18,000 survey participants.
More than 70% of respondents felt that a CBDC, referred to by the RBNZ as “digital cash,” was not important. Only 16% agreed with the central bank’s reasoning for introducing such a currency—ensuring access to central bank money in a digital form and fostering innovation and competition in the nation’s digital economy.
Security and privacy emerged as significant concerns. Nearly 90% of respondents worried about increased traceability and potential government control. There was also skepticism about the necessity of a CBDC, with many participants unconvinced that automated payments or real-time balance tracking provided enough value.
The consultation also addressed the impact of cryptocurrencies like Bitcoin and Ethereum. Most respondents were untroubled by their influence, viewing crypto assets as offering fixed supplies and freedom from centralized oversight. Some considered stablecoins a potential alternative, though the RBNZ maintains that stablecoins are not a reliable substitute for traditional currency.
In response to these findings, the RBNZ plans to prioritize privacy and autonomy in its ongoing research. Legislation, cultural frameworks, and technology solutions will be explored to assure the public that a digital cash system need not erode personal financial freedoms. For now, the concept of a New Zealand CBDC remains under consideration, with a focus on addressing the privacy and trust issues raised by the public.
