The Reserve Bank of New Zealand also stated that a slow-and-steady approach is required for stablecoins and digital currencies due to the plethora of issues raised by their operations.
Assistant Governor Christian Hawkesby said the trends in cash mentioned in the papers could pave the way for innovation in money and the country's economy.
The Reserve Bank of New Zealand will be consulting the public on how a CBDC can work alongside cash, as well as issues arising from digital currencies like Bitcoin (BSV) and stablecoins.
There are currently no imminent plans to launch a central bank digital currency in New Zealand, according to a Reserve Bank of New Zealand senior executive.
