RBNZ: consultation opens on keeping cash local

RBNZ: consultation opens on keeping cash local

RBNZ Consultation Opens on Keeping Cash Local in a Digital Era

The Reserve Bank of New Zealand (RBNZ) has launched a public consultation to address challenges and opportunities in maintaining cash as a viable payment method while adapting to evolving financial technologies. The initiative, outlined in the Future of Money – Cash System Redesign – Issues Paper, seeks stakeholder input on balancing accessibility, security, and efficiency in New Zealand's cash ecosystem.

The consultation paper highlights concerns about declining cash usage, rising costs of cash management for banks and retailers, and the need to ensure equitable access for unbanked or underserved populations. It also explores how cash systems can coexist with emerging digital alternatives, such as central bank digital currencies (CBDCs) or private-sector innovations, without compromising financial stability. Key issues under review include the logistical sustainability of cash distribution networks, anti-fraud measures, and the role of cash in a low-touch economy.

The RBNZ emphasizes that any redesign must align with New Zealand's broader monetary policy goals, including fostering competition, protecting consumer interests, and supporting a resilient payments landscape. Stakeholders are invited to comment on technical, operational, and regulatory considerations, with a focus on maintaining public trust in physical currency while embracing digital transformation.

A parallel Digital Cash in New Zealand – Full Consultation Paper examines potential frameworks for integrating digital solutions without displacing cash's foundational role. Submissions are due by [insert deadline], after which the RBNZ will evaluate feedback to inform policy development.

This consultation reflects the RBNZ's commitment to preserving cash accessibility while navigating the complexities of a rapidly evolving financial sector. By engaging stakeholders, the bank aims to ensure New Zealand's payment systems remain inclusive, secure, and adaptable to future demands.

(Future of Money – Cash System Redesign – Issues Paper)
(Digital Cash in New Zealand – Full Consultation Paper)
(Liquidity Management Review Consultation Paper)