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Paper money will be there in case there are bank runs in 2000. This supposedly good news reveals the terrible threat: a breakdown in the payments system. If people cannot buy through check or credit card, they will buy only from local producers. This would collapse the division of labor.
The NZINFOTECH WEEKLY (Nov. 3) reported this story.
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Meanwhile, the Reserve Bank is aware of the problem and is pleased with the steps the various banks and the industry are taking towards addressing it, says Ian Harrison, senior adviser banking systems department.
He says the Reserve Bank will have ample bank notes in hand should there be a demand for cash but he does not foresee a run on banks due to public panic.
Banks will start educating their clients when the deadline gets closer, he says.
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