New Zealand has become the newest state of the world intending to explore the possibility of having a CBDC. The country is seriously considering the fact that it will have to immediately start working on the national CBDC project and in order to show its seriousness, the country’s central bank has sought public opinion as to whether such a project should be taken on or not.
Because of the crypto boom, many states of the world have developed serious interests towards developing their national CBDC.
CBDC is a project which, to some, it is unnecessary and literally nothing but for others it is the future. Currently, there are more than 83 countries of the world who are/were interested in developing CBDCs, and New Zealand is amongst them. So far five CBDCs projects have seen their completions and working successfully, which include Bahamas as the first country having launched CBDC. Approximately, 16 CBDCs projects of the world are currently work in progress and will take further time before the final launching. There are however 14 CBDCs which are undergoing testing, amongst them are states such as Ukraine, Saudi Arabia and China.
Ukraine, which is also moving into the CBDC testing phase, is currently searching for a suitable developer for installing a blockchain network.
This is enough to let know other states that the whole world is going after CBDCs. This very aspect has been also recognized and acknowledged recently by New Zealand as well. New Zealand’s Reserve Bank i.e. the country’s central bank was seen collecting public opinion regarding the CBDC project. However, the bank has officially announced collection of data for determining the public’s interest towards possible CBDC project. The announcement was made public on 30th September, 2021.
Christian Hawkesby, who is the Asst. Governor of the country’s central bank said that they need to work on CBDC project. He suggested that the bank is aware that almost entire world is taking the issue of CBDCs very seriously. However, the Reserve Bank does not want to follow others but instead would like to arrive at a decision based on public opinion. New Zealand will only work towards CBDC if the project is feasible and that the public interest in the project is involved. Without either of the two, in no way Reserve Bank will think of carrying out the project, clarified Hawkesby.
Hakesby also said that the bank has no doubt that the project will be beneficial for the private sector. Even the monetary sovereignty of New Zealand can be safeguarded by digitalizing national currency. However, while doing so, the bank would need to first ensure that the national currency’s stability is kept intact. Similarly, the bank would need to also address and highlight the risks that come with CBDC.
In the end, Hawkesby said that the future of New Zealand’s CBDC project now rests with the nation. Public opinion is sought and only the public will decide whether the country should or shouldn’t carry out the CBDC project.