altogether, while others are drawn to the promise of another gold rush. other new forms of money also promise further innovation - for example peer - to - peer payments, micropayments, programmability, and low cost cross - border payments - than existing digital products provided through the existing banking system. however, the rush to withdraw cash during level 4 lockdown in 2020 showed that cold, hard cash still provides security and certainty for many new zealanders. against this context, there is a historic opportunity for us to shape how money can better serve a sustainable and productive economy for all new zealanders, both by considering how we can _ _ _ _ _ _ _ _ _ _ _ _ i would like to acknowledge with thanks principal author jean - christopher somers, the wider money and cash policy team and department, and other reviewers and contributers from te putea matua. https : / / www. rbnz. govt. nz / - / media / reservebank / files / publications / speeches / 2019 / speech - the - view - from - tane - mahuta. pdf see : https : / / www. rbnz. govt. nz / notes - and - coins / future - of - money make use of digital technology to modernise central bank money, and how we can ensure cash remains an option for those who need it. to do this, we need courageous conversations with new zealanders now about how we can innovate to preserve the current system's benefits and to address its shortcomings. there is an immense opportunity for central banks, financial institutions, fintech organisations and other innovators to harness technological advances to deliver better and cheaper services to customers. those that don ’ t keep up risk being left behind. i want to draw your attention to our recent and ongoing public consultations on the future of money, building on the future of cash consultations that began in 2019. these consultations explore the stewardship role we are taking on for money and cash. they also discuss the potential opportunities and challenges associated with issuing a central bank digital currency in new zealand. the third and current consultation, released in late november 2021, discusses issues affecting the cash system and options to address them. you can find the links to these consultations on our website. 4 we welcome your feedback on all of these subjects. this speech draws and expands upon the material of the issues paper. i will discuss stewardship, central bank digital currencies and cash

in core processes – in areas that are of high regulatory importance – we notice that it is used in parallel to already existing models. in the sense that both the old and the new run next to each other. this shows that, currently, there is not yet enough confidence in the new technology to replace the older technology – the risk of regulatory mistakes is still deemed too high. the financial sector as a whole is, indeed, on an ai odyssey – a long and eventful journey towards its destination. a journey with setbacks and progress. a journey with an unclear and uncertain path forward. but also, i hope, a journey that is fuelled by the very idea of becoming a financial sector that has embraced ai to its fullest potential – 1 / 4 bis - central bankers'speeches and that does so with respect for the values that underly our society, like fairness, freedom and security. rules and regulations reflect these values. they are instrumental in protecting them. and as our society changes and certain values come under pressure, rules and regulations need to change accordingly. dnb is currently supervising ai within its prudential and aml / cft mandate. with this mandate, we ensure the stability of the financial system, and the solidity and integrity of financial institutions. the european ai act, which came into effect earlier this year, broadens our mandate. in our ai supervision, we will now also take account of fundamental rights, like privacy and non - discrimination. these changes also affect the financial sector, of course. they create uncertainty. at de nederlandsche bank, however, we are committed to creating regulatory certainty around ai supervision in the financial sector, for instance in our contributions to the european supervisory authorities, and the bank of international settlements. we won't stop encouraging financial institutions to explore and experiment. at the same time, we want them to be confident in discussing their progress with us. because we believe this is part and parcel of a successful odyssey. as a supervisor, we are fully aware that ai is here to stay. already in our 2022 report'from recovery to balance ', we called for the use of machine learning in transaction monitoring and kyc risk profiling. we did this because we are convinced that it will help build better predictive models – models that will benefit financial institutions, because they can conduct more targeted and efficient due diligence. models that also benefit society as a whole. precisely because ai is capable of raising more targeted red flags