Source: CPMI Red Books, Reserve Bank of New Zealand, Norges Bank.
The Reserve Bank recognises the potential for transformative innovation in financial services (“fintech”) to increase efficiency and financial inclusion.14 At the same time, innovations may create new risks that need to be managed or mitigated appropriately.15 Some of those risks include money-like proposals that sit outside of the regulated sector and are not reliably denominated in New Zealand dollars.