The bank has published two issue papers - 'The Future of Money - Stewardship' and 'The Future of Money - Central Bank Digital Currency' - as the basis for the consultation, which will close on 6 December.

Assistant Governor Christian Hawkesby, says: “We’re seeking public input on how we should perform our role as steward of money and cash, and how we should assess the case for central bank money in a digital form alongside cash."

He notes that two years ago the Bank's work was focused on the future of cash, but now it has broadened out to consider the future of money.

"We still have work to do to preserve cash and the cash system for those that need it," he says. "At the same time, trends in cash use and availability along with digital innovation create opportunities to innovate as well as challenges. We believe these should be discussed widely and our consultations aim to encourage that."

In November the Reserve Bank will be releasing a third issues paper that will set out the issues facing the cash system and explore "high level" options to achieve greater efficiency and resilience

“A central bank digital currency would see the features and benefits of cash enjoyed in the digital world, working alongside cash and private money held in commercial bank accounts," says Hawkesby. "It could make for much more efficient and integrated platforms benefitting individuals and businesses, as well as protecting monetary sovereignty. However, any decision to issue a CBDC would need to carefully consider operational risks, such as cyber security, and impacts on the financial sector."