New Zealand Launches Consultation on Digital Cash and Central Bank Digital Currencies (CBDCs)

On Wednesday, the Reserve Bank of New Zealand launched a consultation on digital cash, seeking feedback from citizens on its design, interest payment, and holding limits. The central bank is considering a $2000 holding limit, similar to the digital Euro's benchmark. The consultation paper stated that digital cash could offer more payment options, be easily accessible, and support innovation, while also boosting competition in New Zealand's payments landscape. The country's CBDC is still in the multi-stage and multi-year process, and the consultation closes on July 26.