New Zealand will analyze implications of the launch of CBDC

by in Cryptocurrency News

New Zealand

The Central Bank of Jamaica announced its intention to begin testing its digital currency (CBDC) in August 2021.

The list of countries ready to launch a token, if necessary, is constantly growing. New Zealand may be replenishing it soon. The central bank plans in the coming months to analyze the options for creating and the consequences of introducing a digital currency backed by fiat money.

New Zealand authorities announced preparations for the development of the CBDC concept last Wednesday. Central Bank Deputy Governor Christian Hoxby noted that the regulator fears that CBDC could undermine the stability of the state's banking system.

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The regulator will form a list of threats that the token can create and prepare a plan to counter the challenges.

New Zealand authorities have long drawn attention to the growing influence of Bitcoin and other decentralized digital assets. So the instruments are of concern to the regulator. However, if CBDC is fully controlled by the Reserve Bank, then the latter can give a start to the development of a token.

Hawksby added: "The potential of the digital currency of the Central Bank to work along with cash will be explored. It will also consider the problems that may arise after the emergence of a new form of money."