INDEPENDENT NEWS

Reserve Bank Seeks To Preserve Benefits Of Cash

Published: Mon 19 Oct 2020 02:15 PM
The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference today (Wellington, Monday, 19 October 2020).
“Cash is being used less as a means of payment and access to cash is declining. However, cash provides important benefits to many people, including legal tender money, social and financial inclusion, peer-to-peer payments, backup payments, and privacy and autonomy,” said Mr Hawkesby.
“We encourage every banking sector participant to consider their role in supporting the needs of their customers, including those who depend on cash for their everyday needs”, he said.
To support its strategic leadership, the Reserve Bank is building new analytical, policy and governance capability.
“In the years ahead, some of the biggest questions facing central banks could well be around the future of money itself”, Mr Hawkesby said.
The Reserve Bank’s immediate priority is to work with the banking and service industries to ensure that the cash system continues to be fit for purpose. Initiatives include reshaping vaulting arrangements, banknote standards, and building towards a sustainable future. Ultimately, a more transformational solution might be needed.
“Looking forward, we remain open minded about how the technology of money and payments will continue to evolve,” Mr Hawkesby said.
He added that central banks around the world, including the Reserve Bank, are researching retail central bank digital currencies (CBDCs). “Although we have no imminent plans to issue a CBDC, we are well-connected and considering these developments very closely.”
The Reserve Bank’s new direction for money and cash has emerged from its Future of Cash – Te Moni Anamata initiative which involved extensive public consultation in 2019.
More information:Speech: Working together to be 'on the money'Future of Cash pageWhat is Money? - RBNZ video

Next in Business, Science, and Tech

Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour
By: Statistics New Zealand
Election Boosts October Job Numbers
By: Statistics New Zealand
New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries
By: New Zealand Government
Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd
By: Discovery
Big Year Underway At Albatross Colony
By: Department of Conservation
ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing
By: ASB
Births And Deaths: Year Ended September 2020
By: Statistics New Zealand
NZ Economy Holding Up Well Amongst The Developed World, Forecast To Finish The Year Down 3% On 2019
By: ASB
Govt Goes “hard And Early” On RSE Workers
By: ACT New Zealand
Bringing RSE Workers Back The Right Move
By: Business NZ
Cream Of The Crop Will Get To Market
By: Auckland Business Chamber
Horticulture Industry Appreciates Government’s Decision On RSE Workers
By: Horticulture NZ
Skyrocketing house prices: Economist says Reserve Bank, govt, trying to address pandemic
By: RNZ
NZ Govt Considers Making House Prices Part Of RBNZ Mandate
By: XE Money Transfer
Māori Population Estimates: At 30 June 2020
By: Statistics New Zealand
View as: DESKTOP | MOBILE © Scoop Media