What you told us about Digital Cash

Audio: Kia ora I'm Robbie, Manager of Money and Cash Policy here at Te Pūtea Matua.

We recently asked people all over the country for their thoughts on a proposed digital currency for New Zealand - Digital Cash.

Our consultation showed there’s strong public interest in Digital Cash.

It had the highest ever response to any consultation we've run, with over 500 people and groups making written submissions, and more than 18,000 people responding to an online survey.

If you were one of them, thanks for responding.

Text on screen: This is what we learned:

Text on screen: Cash is crucial for Kiwis.

Audio: People wanted assurance that banknotes and coins would still be available and accessible if Digital Cash were introduced.

We want to be clear. Digital Cash will not replace your physical banknotes and coins. It's intended to give you more choice when making payments, not less.

Text on screen: Current payment options are not delivering what customers want.

Audio: People told us they want fast, direct, offline and secure ways to pay with low fees. People do not have these choices today, except with banknotes and coins.

More than 60% of people wanted to be able to make instant payments, even when the power is out or the internet is down. This would give people another option in an emergency, like a cyclone or earthquake.

60% of people said they wanted real time payments and that Digital Cash be free to use.

Text on screen: Privacy and control are big concerns.

Audio: 90% of people were worried that introducing Digital Cash would result in their spending being monitored or controlled, while 46% raised concerns about privacy more generally.

We have more work to do on these things.

You're concerned about privacy and so are we. If Digital Cash is introduced, it will be designed to be private. Neither the government nor the Reserve Bank could see how you spend your money.

But we would still need to protect against funding terrorism, organised crime and money laundering.

Text on screen: Businesses, financial service providers and others, like charities were supportive of our reasons to explore Digital Cash.

Audio: But these sentiments weren't shared by the general public.

Text on screen: Digital cash could help disabled communities.

Audio: Our alternate formats consultation showed current payment methods are biased against disabled people. For example, many disabled people use contactless payments and get hit with high fees.

This is a big driver in why we want to explore Digital Cash.

Making Digital Cash inclusive and accessible is a priority. We're concerned the current payment options available to New Zealanders are too limited.

Text on screen: What's next?

Audio: We'll use this feedback in the next stage of our work. We're going to do more work on the design, the technology, the policy and make a cost benefit analysis.

Text on screen: We'll do this in 2025 and 2026.

Audio: There'll be more chances to have your say as we assess the case for Digital Cash for New Zealand.

We'll work with the government to decide whether to introduce digital cash or not.

Text on screen: If it is introduced, it would be available from about 2030. If you want to learn more, take a look at our website: rbnz.govt.nz

Cash is crucial for Kiwis

84%

were worried about losing access to banknotes and coins if we were to introduce Digital Cash.

Digital Cash will not replace physical cash (banknotes and coins). We know banknotes and coins are important for many people and we will continue to provide them for those who want to use them. Digital Cash will give you more choice when making payments.

Businesses, financial service providers, and charities were supportive of our reasons to explore Digital Cash. But some of these sentiments weren’t shared by members of the public responding to the survey.

Privacy and control are big concerns

90%

were worried that introducing Digital Cash would result in their spending being monitored or controlled.

46%

raised concerns about privacy more generally.

We have more work to do on these things.

You are concerned about privacy and so are we. If Digital Cash is introduced, it will be designed to be private. Neither the government nor the Reserve Bank could see how you spend your money. But we would still need to protect against funding terrorism, organised crime and money laundering.

Current payment options are not delivering what customers want

60%

wanted to be able to make real-time payments even when the power is out or the internet is down
wanted reassurance that if their Digital Cash was stolen, they would get their money back.

Digital Cash would give people another option in an emergency, like a cyclone or earthquake. People don’t have these choices today except with banknotes and coins. We saw this during Cyclone Gabrielle, when people relied on cash to pay.

You also told us you want fast, direct, offline and secure ways to pay with low fees.

We’re concerned about the limited choices New Zealanders have to pay today, and the lack of competition and innovation in our money and payments markets.

Digital Cash could help disabled communities

60%

wanted Digital Cash to be free to use.

Feedback from our alternate formats consultation showed current payment methods are more challenging and expensive for disabled people. For example, many disabled people use contactless payments which have higher fees.

Making Digital Cash inclusive and accessible is a priority for us.

Community organisations and academics emphasised the importance of inclusion, privacy and access for vulnerable groups. That having adequate access to money enables basic human rights. They urged us to keep working to improve access to physical cash as well as Digital Cash.

Digital Cash would support innovation and competition

Banks, fintechs and financial institutions were interested in Digital Cash that meets business-to-business and wholesale settlement needs. They were in support of Digital Cash because:

it could support inclusion
provide us with more technical detail
allow private companies to develop innovative ways for people to pay.

Fintechs and the cryptoasset sector were more positive about new technology. They felt that Digital Cash would promote innovation and competition in payments. They also said uptake of Digital Cash was important and we should encourage people to use it.

What's next for Digital Cash?

Your feedback has helped us understand how we can better design Digital Cash for New Zealand. The design phase continues in 2025 and 2026 with more work on the design, technology, policy and a cost-benefit analysis. There will be more chances to have your say as we assess the case for Digital Cash for New Zealand.

We will work with the Government to decide whether to introduce Digital Cash or not. If it is introduced, it would be available from about 2030.

Sign up for updates on digital cash

You can find all our consultation materials and download a copy of the submissions we received on the CitizenSpace website.

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