The thick and probably expensive (at least one of the documents was produced jointly with the consultancy firm Accenture) set of consultation documents came out a few months ago. I thought I had run out of time to read and submit on them because somehow I’d got it into my head that the deadline was last week. It was nice of the Reserve Bank to send out a reminder to interested parties that the deadline was in fact today.
Until I read the documents yesterday I still wasn’t sure I’d bother. But when I did read them I was astonished at how thin (in analytical etc substance) they were, and how weak the case seemed to be for the rather limited CBDC they were proposing (as well as how little thought seemed to have been given to how things might evolve, beyond the Reserve Bank’s control, once a CBDC was introduced (which, in fairness to the Bank, they envisage as still being some years away, beyond even the terms of Adrian Orr and Neil Quigley)).
I wrote a short submission on an earlier (2021) Reserve Bank consultation on these issues. The submission I lodged this afternoon was not much longer (5.5 pages). With more time I might have treated some of the issues in more depth, but really the onus is on the Bank to make their case, and to this point they have not done so.
My full submission is here.
The introduction and final paragraphs follow
I wrote a short submission on an earlier (2021) Reserve Bank consultation on these issues. The submission I lodged this afternoon was not much longer (5.5 pages). With more time I might have treated some of the issues in more depth, but really the onus is on the Bank to make their case, and to this point they have not done so.
My full submission is here.
The introduction and final paragraphs follow
Click to view
It might make an interesting OIA for someone to ask the Reserve Bank how much money has been spent on CBDC analysis and proposals over the last five years. That sum seems unlikely to have been small.
Michael Reddell spent most of his career at the Reserve Bank of New Zealand, where he was heavily involved with monetary policy formulation, and in financial markets and financial regulatory policy, serving for a time as Head of Financial Markets. Michael blogs at Croaking Cassandra - where this article was sourced.
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