RBNZ outlines options for cash system reform

Options include consolidating public and private cash sector functions into one or more public utilities, banks paying merchants that provide cash-out services on their behalf, requiring some merchants and government agencies to accept cash, and requiring banks to provide cash services.

The issues paper Future of Money – Cash System Redesign reinforces the bank's commitment to keeping cash available for as long as it is needed.

The consultation sets out 16 possible policy responses that could help deliver a fit for purpose cash system and eight policies that could operate as a coherent ‘bundle’ to appropriately shape incentives and address the Reserve Bank's objectives.