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The Reserve Bank of New Zealand has revealed that it will spend the next few months in public consultation as it ramps up its efforts towards developing digital central bank currencies.

The Reserve Bank of New Zealand announced that it has launched a public advisory on the Central Bank Digital Currency (CBDC). Bank Apex said it plans to devote the next few months to a series of public consultations as it needs more advice on issues ranging from stablecoins to central bank digital currencies (CBDCs).

The central bank announced yesterday when Submit your roadmap. From what the bank announced, it will depend on the planning work that was previously carried out in the territory, in accordance with the forecasts for future payments in the country.

Christian Huxby, deputy governor of the Reserve Bank of New Zealand, said such a move is necessary as money is slowly being converted into digital forms. The ruler said:We will not only look at what we should do as administrator, but what a flexible and stable New Zealand monetary and currency system might look like and how we can best respond to digital innovations in terms of money and payments.“.

According to the governor, the first consultation is aimed at presenting general ideas for managing, supervising and acquiring funds. It will also include outlines of specific topics that will be addressed in the first round of consultations.

“Subsequent papers will examine the possibility of a central bank digital currency (CBDC) working alongside cash as government-backed money.A critical area under scrutiny by regulators over the past few months is stablecoins, in particular the Diem coin proposed by Facebook.

The governor said the Reserve Bank of New Zealand will also look into problems arising from new forms of digital money, including crypto assets such as Bitcoin and stablecoins as well as those proposed by a Facebook-led consortium. The governor added that the consultations will focus on how the withdrawal system may need to continue to meet the needs of users.

New Zealand joins a number of other countries conducting active research on central bank cryptocurrencies as central banks seek access to private financial institutions in the crypto sector.