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Reserve Bank digital cash: social safety net, or Big Brother in your wallet?
The Reserve Bank of New Zealand (RBNZ) is considering a central bank digital currency (CBDC), or “digital cash”. Other central banks around the world are contemplating the same. We already use digital forms of payment. So, why is the government exploring a central bank digital currency, and what are the issues? Central bank digital currencies may be designed to combat cryptocurrencies, which attempt to bypass both central and commercial banks. Like cryptocurrencies, CBDCs could also limit the role of commercial banks. To an extent, the global financial crisis was caused by excessive risk-taking and the banking ... (full story)