New Zealand fears the crypto train is off with a ‘wait and see’ approach
A New Zealand ministry focused on shaping the country's economic strategy has proposed a more favorable stance towards cryptocurrency innovations. The ministry has made several recommendations aimed at increasing the development of digital assets in the country.
New Zealand's Minister of Business and Consumer Affairs, Andrew Bailey, has recommended revitalizing the country's slow approach to testing and implementing innovations in digital assets and blockchain technology. He urged the government to support the development of the crypto industry and consider appropriate policies to manage related risks.
Bailey's office responded to an inquiry on cryptocurrencies by the Finance and Expenditures Committee:
“The current ‘wait and see' approach may cause New Zealand to miss out on the benefits of growth in the digital asset industry.”
The ministry's advisers have put forward eight key recommendations for New Zealand's return to the global crypto wave. The recommendations include adopting policies and regulations to encourage growth in digital assets and blockchain, greater collaboration between government and industry players to address skills shortages in digital assets and blockchain, and immigration.
Other recommendations – such as training and education resources, tax incentives, anti-money laundering (AML) provisions, and continuing design work on a domestic central bank digital currency (CBDC) – added to the list of crypto-friendly approaches. .
Bailey noted that most of the recommendations are long-term in nature and highlight the need for an integrated global regulatory approach and regulatory framework for digital and crypto assets.
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Bailey's advice for a domestic CBDC is at odds with the views of New Zealand's central bank governor, Adrian Orr.
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Bitcoin (BTC) is neither a medium of exchange nor a store of value or a unit of account, Orr argued when asked by the Reserve Bank of New Zealand (RBNZ) about cryptocurrency concerns. He added:
“Equally stable coins, I think, are the biggest misconceptions. […] Stablecoins are not stable. They are only as good as the balance sheet of the person providing that stable coin.
“The number one thing we can do is be as clear and transparent as we can. They are speculative coins, not currency and not central bank cash.
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