New Zealand’s central bank starts consultations on Bluetooth-friendly CBDC

The Reserve Bank of New Zealand is now exploring the introduction of a central bank digital currency (CBDC) also known as “digital cash,” as innovations in money and payments are “challenging New Zealand’s monetary sovereignty,” according to Ian Woolford, Reserve Bank director of money and cash.

In a press release on Apr. 17, the central bank said digital cash would coexist with physical cash options and would not require a commercial bank account for usage, only a digital wallet, payment card, or mobile app. Woolford emphasized that digital cash would bring more enhancement to privacy, security, and trust for users, adding that the central bank “will not control or see how you spend your money.”

“It would also work via Bluetooth, so you could make payments without connecting to internet. This would be useful in an emergency, or when the power is out.”

Ian Woolford