23 April 2024
S Hill
[FYI request #26248 email]
Dear S Hil
Thank you for your request of 27 March 2024 made under the Official Information Act 1982
(OIA), as fol ows:
Under the OIA I am requesting responses for the following as Minister of Finance in
regards to CBDCs (Central Bank Digital Currencies)
1. Are you aware of any work being undertaken by the Reserve Bank into CBDC's?
(i.e. investigation, research, implementation)
2. Are you supportive of the use of CBDCs?
3. What is the government's position on the use of CBDCs?
Response
I wil respond to each of your questions in turn.
1. Are you aware of any work being undertaken by the Reserve Bank into CBDC's? (i.e.
investigation, research, implementation)
I am aware that the Reserve Bank of New Zealand Te P tea Matua (the RBNZ) is exploring
digital cash, a form of central bank digital currency, as part of its wider Future of Money work
programme. The Future of Money work programme also includes efforts on cash system
redesign and private innovation. You can find out more about the work programme here:
https://www.rbnz.govt.nz/money-and-cash/future-of-money.
The RBNZ provides me with regular briefings on its Future of Money work, including digital
cash, carried out under its statutorily independent role. Most recently, I was informed of the
upcoming public consultation on digital cash (see below).
I understand that the RBNZ is taking a multi-stage approach to its work on the costs, benefits,
and risks of digital cash, as well as design and implementation issues, although no decision
has been made on its introduction. I note that the Finance and Expenditure Committee
recommended last year that the RBNZ should continue with design work on its central bank
digital currency. This report is available on the Parliament website at:
https://selectcommittees.parliament.nz/Inquiry-into-the-current-and-future-nature-impact-
and-risks-of-cryptocurrencies
2. Are you supportive of the use of CBDCs?
3. What is the government's position on the use of CBDCs
The government has not formed a position on the introduction of digital cash/CBDC. Any such
decision wil need to be informed, among other things, by the RBNZs exploration and design
work underway, as outlined above. Given the complexity of the work, such a decision is likely
to be years away.
Public engagement forms a key part of the RBNZs work. You may be interested in the RBNZs
current consultation on digital cash. This consultation wil update the public on the RBNZs
progress to date and current vision for a CBDC, as well as future processes, decision points,
and engagement opportunities. It will also seek public feedback on strategic direction and
high-level policy and design considerations. The consultation is open for public submissions
until the end of July 2024 and is accessible at www.rbnz.govt.nz/digitalcash.
Additionally, the RBNZ sought public feedback on an issues paper on high level policy
consideration regarding a central bank digital currency in 2021. The paper, summary of
submissions, and the RBNZs response to the submissions can also be found at
https://www.rbnz.govt.nz/money-and-cash/future-of-money.
You have the right to seek an investigation and review of this response by the Ombudsman,
in accordance with section 28(3) of the OIA. The relevant details can be found on the
Ombudsmans website at www.ombudsman.parliament.nz.
Yours sincerely
Hon Nicola Wil is
Minister of Finance
