The Reserve Bank of New Zealand (RBNZ) is progressing with plans to potentially issue a digital dollar, following a comprehensive four-stage approach.

The RBNZ has initiated a 101-day public consultation to gather feedback on the principles and design options proposed for the digital dollar.

This consultation marks a crucial step in the bank's digital cash initiative, aiming to discuss issuance further in future consultations.

Currently in the second stage of its digital cash project, the RBNZ released a consultation paper on April 17 to explore design options and formulate a budget.

The consultation deadline is set for July 26, indicating a thorough analysis and gathering of public opinion before moving forward with plans to introduce a digital dollar by 2023.