Digital cash is a proposed Central Bank Digital Currency, an electronic version of the New Zealand dollar issued by the Reserve Bank. Unlike physical cash, every transaction would leave a digital footprint, creating a direct link between the government and individual users.
The Taxpayers’ Union has urged the Reserve Bank to halt the project, arguing it addresses a problem the private sector can already solve. The proposal is seen as unnecessary government intervention with weak justification.
Digital cash risks privacy violations, government control over personal spending, and potential account freezes. It also introduces cybersecurity vulnerabilities, threatens financial stability, and undermines the continued use of physical cash as a safeguard for personal autonomy.
