Looking at its cash developments
The Reserve Bank (RBNZ) is actively engaging the public in its digital cash consultation, which remains open for submissions until July 26.
Inclusive engagement
RBNZ has been consulting with various community groups, including older people, young people, disabled individuals, Māori, and other stakeholders.
“We think digital cash will provide people with an instant, safe, low-cost way of paying for everyday things without needing a bank account,” said Ian Woolford (pictured above), RBNZ’s director of money and cash.
Woolford stressed that digital cash will also support trust in the New Zealand dollar and encourage competition and innovation in payments.
Community cash trials
Nineteen (19) rural towns have applied for the community cash service trials, which aim to test new retailer-focused cash services for communities with limited banking access. Around eight towns will be selected for these trials, which are currently under evaluation.
Decline in cash use
The 2023 Cash Use in New Zealand survey showed a continued decline in the use of cash for everyday transactions, dropping to 57.2% from 60.4% in 2021 and 95.8% in 2019.
The survey highlighted that Māori are more likely to use cash, while rural residents face challenges in accessing cash services. Additionally, younger people are increasingly moving towards cashless transactions.
Upcoming ESAS review
The second consultation on the Exchange Settlement Account System (ESAS) access review is scheduled for the third quarter of 2024. This consultation will cover the ESAS access policy and a revised risk assessment framework.
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