{"id":30321,"date":"2020-10-19T19:01:14","date_gmt":"2020-10-19T16:01:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=30321"},"modified":"2025-08-27T21:44:29","modified_gmt":"2025-08-27T18:44:29","slug":"nz-central-bank-signals-willingness-to-join-cbdc-race","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/nz-central-bank-signals-willingness-to-join-cbdc-race\/","title":{"rendered":"NZ central bank signals willingness to join CBDC race"},"content":{"rendered":"

Advisor to the Governor of the Reserve Bank of New Zealand, Christian Hawkesby, said regulators are conducting in-depth research into central bank digital currencies (CBDCs). This follows from the transcript<\/a> of his remarks.<\/p>\n

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According to Hawkesby, who also heads the central bank’s economics, financial markets and banking department, the regulator has not committed to issuing a digital New Zealand dollar.<\/p>\n

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The official noted that rising global interest in CBDCs is driven by a decline in the use of cash as a means of payment and a reduction in its circulation. The COVID-19 pandemic, in his view, interrupted but did not reverse this trend.<\/p>\n

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\u201cToday banknotes form only 7-9% of money in circulation,\u201d Hawkesby explained.<\/p>\n<\/blockquote>\n

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The adviser emphasised the need for the central bank to see the evolution of money and \u201cto remain open.\u201d He also recalled the 2017 initiative to digitise the banking sector.<\/p>\n

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Hawkesby noted that the central bank is among the 80% of regulators worldwide that actively research<\/a> aspects of issuing and using CBDCs.<\/p>\n

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Recall, the Bank for International Settlements and seven central banks presented<\/a> foundational principles and key characteristics of CBDCs.<\/p>\n

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Recently, Spain’s central bank also stated<\/a> its desire to play an active role in these studies.<\/p>\n

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The head of the Swedish central bank urged<\/a> Parliament to grant the developing digital krona the status of a means of payment.<\/p>\n

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China remains the leader in the race of national digital currencies. In the PRC, they intend to<\/a> outpace other countries and be first to issue a CBDC, including to displace the dollar on the world stage. The head of the Federal Reserve, Jerome Powell emphasized<\/a>, that for the United States it matters not to beat others to issuing a digital currency, but to do it right.<\/p>\n

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Monetary authorities in Australia, neighboring to New Zealand, in September expressed skepticism about CBDCs.<\/p>\n

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How and why central banks are creating digital currencies (CBDCs)<\/a><\/p>\n<\/blockquote>\n

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