As the year 2021 is coming to a close, countries from around the world have started expediting the development of CBDCs. Several countries that had already started the development of the CBDCs are close to their launch phases.
However, as time goes by, more countries are appreciating the central bank’s digital currencies. These countries have started embracing the CBDC technology and are working on developing their own digital currencies.
With so much progress and many developments being made in the CBDC space, New Zealand is also compelled to adopt the technology.
In the recent updates, the Reserve Bank of New Zealand (RBNZ) has gone ahead, releasing its paperwork surrounding the CBDC technology. The RBNZ has reportedly issued documentation that is aimed at the development of the central bank’s digital currency. In the documentation, the CBDC has provided the insights and perspective that it has surrounding CBDCs.
The documentation released by the RBNZ provides an outline of the designs and purposes that the CBDC would fulfill for the country. The documentation also lays out all possible benefits and risks that may be involved with the adoption of the CBDC.
However, the release of the documentation means that the Reserve Bank of New Zealand is interested in adopting the CBDC. For it to release the documentation and seek review and comments from the public, means that the RBNZ itself is oriented towards CBDC. However, the bank does not want to make a decision on its own and wants the public of New Zealand to share their thoughts on the adoption of the CBDC.
While releasing the documentation surrounding the CBDC, the RBNZ has announced that the citizens have to comment on it. They need to go through the documentation and share their thoughts on the CBDCs. The regulator has urged that the public must review the documentation and share their thoughts on it.
The RBNZ has announced that the locals have until December 6, 2021, to go through the documentation and share their comments on the CBDC.
The main purpose of releasing the documentation surrounding CBDCs is to give a better picture of how people can benefit from them. It contains the use cases for individuals as well as businesses involving CBDCs.
The CBDC is also compared with paper money in order to demonstrate its advantages and conveniences over paper money.
The main reason why the Reserve Bank of New Zealand seeks public review on the matter is that the New Zealanders are not much fond of digital currencies. It was recently established in a survey that the majority of the public in New Zealand is happy with paper money. Therefore, it is extremely important that the RBNZ first learns about the interest of CBDC among the public before launching its development.