The Reserve Bank of New Zealand (RBNZ) is considering the introduction of a digital version of the country's physical cash. This digital New Zealand dollar would offer universal access to central bank money in both physical and digital forms.

In a consultation paper released on April 17, the RBNZ highlighted that New Zealanders currently only have access to physical central bank money. The bank promotes the digital version as a way to ensure the "certainty and safety" of digital cash is available to all residents.

The paper also distinguishes the proposed digital dollar from volatile crypto assets issued by private entities. The RBNZ emphasized that, unlike cryptoassets, which are not denominated in New Zealand dollars, the digital version would be government-backed and denominated in the local currency. This would help preserve New Zealand's monetary sovereignty, allowing the country to independently manage its money and set interest rates.

The central bank is also seeking public input on desired features for the digital New Zealand dollar. Residents can share their preferences through an online survey or by submitting written feedback.