The Reserve Bank of New Zealand (RBNZ) has announced that it is exploring the introduction of a central bank digital currency (CBDC), often referred to as “digital cash.” This move comes as the RBNZ aims to address the challenges posed by innovations in money and payments to New Zealand’s monetary sovereignty. According to Ian Woolford, the RBNZ’s director of money and cash, the digital cash would coexist with physical cash options and would not require a commercial bank account for usage.