New Zealand’s Digital Currency Plans Raise Eyebrows: Kiwis Voice Strong Privacy Concerns By ChainFabricNews

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In recent months, New Zealand has been making headlines with its ambitious plans to introduce a Central Bank Digital Currency (CBDC), which the Reserve Bank of New Zealand (RBNZ) is calling “Digital Cash.” While the idea might sound modern and futuristic, it hasn’t exactly won over the public—at least, not yet.

The RBNZ recently wrapped up its second round of public consultation on the idea, and the response was overwhelming. Over 18,000 Kiwis participated in the survey, making it one of the most highly responded-to consultations in the bank’s history. The goal? To find out what everyday New Zealanders think about replacing—or at least supplementing—physical cash with a digital version issued by the central bank.

Not Everyone’s on Board

Surprisingly, only about 16% of people said they support the move toward a CBDC. The overwhelming majority expressed concerns, and one word kept coming up over and over again: privacy.

Many respondents fear that a digital currency controlled by the government could open the door to more surveillance. Even though the RBNZ has stated that it wouldn’t monitor personal spending habits, Kiwis aren’t entirely convinced. The idea of the government possibly tracking every digital transaction just doesn’t sit well with most people.

Another major concern was the future of physical cash. About 84% of people said they’re worried it could eventually disappear altogether. For rural communities or older citizens who rely heavily on cash, this is a big issue.

What the Reserve Bank is Saying

To its credit, the Reserve Bank isn’t ignoring the feedback. Ian Woolford, Director of Money and Cash at the RBNZ, acknowledged the public’s concerns and promised that privacy would be a top priority in the development of any digital currency. He reassured people that Digital Cash would be designed to function much like regular cash—with no surveillance or tracking.

Woolford also confirmed that the bank has no intention of phasing out physical cash. In fact, they’re planning to launch trials in rural areas where access to cash is already limited, to ensure it remains available to everyone who needs it.

What’s Next?

The CBDC project is still in its early stages. Over the next couple of years, the RBNZ will be conducting more research, gathering feedback, and fine-tuning the technical details. The earliest we might see Digital Cash introduced is around 2030—so there’s still plenty of time for more discussions and adjustments.

Final Thoughts

New Zealand’s journey toward a digital currency is certainly bold, but it's clear that many Kiwis want reassurance before they’re ready to embrace it. Privacy, freedom of choice, and access to physical money are top of mind for the public. Whether the RBNZ can design a system that truly balances innovation with these values remains to be seen—but at least the conversation has started.

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