Falling behind is also not an option for us and for that reason we will soon be commencing proof-of-concept design and testing for a CBDC as part of our assessment of the case for a CBDC in New Zealand.
The technology exists now to implement a CBDC, but it needs to be well designed and thought through, user-friendly, bulletproof to cyber and operational risk, with privacy and other controls that ensure and promote widespread trust and use. Cash system issues I want to emphasize again that the Reserve Bank is not proposing to remove physical cash from our economy.