The stable coin of the New Zealand dollar goes directly to the local crypto exchange
The New Zealand dollar-peg stablecoin has gone live in partnership with New Zealand crypto exchange Easy Crypto and Australian blockchain development firm Labris.
In the November 22 announcement, Labrys and Easy Crypto NZDD will be backed by cash 1:1 and will be regulated by the New Zealand Financial Markets Authority.
It will initially work on Ethereum but has plans to expand to Polygon, BNB Smart Chain, Arbitrum, Optimism and Coinbase's Base.
Simple Crypto was pushed to launch the stablecoin because it was too difficult for New Zealanders to maximize their profits using the US dollar-pegged token, he said.
EasyCrypto founder and CEO Janine Grainger said the NZDD bridges the gap with traditional finance and “promotes NZ as a nation, giving us a digital and programmable currency that can do everything the NZD can do.”
Related: Binance to launch New Zealand-based offices following regulatory approval
On the stable coin side, Easy Crypto introduced a multi-currency self-sustaining wallet secured by multi-party computational cryptography by registering a user's “trusted social circle” with key units instead of lineage.
Stay tuned for an episode about the new wallet and the new #stablecoin! #NZDD #investing #alternative #property #realdiversification with simple crypto.pic.twitter.com/Wt9EPq1Gri
— Darcy Ungaro (@UngaroDarcy) November 21, 2023
An August report by New Zealand's parliament says the country has taken a “directional” approach to crypto regulation. It recommends that problems be resolved when they arise and that the government create “coherent and consistent guidance on the management of digital assets under current law.”
Previous attempts to launch a NZ dollar-pegged stablecoin include the launch of $NZDs by Australian financial services provider Techmini in 2021.
However, in 2022, the bridge financial protocol DFX used by Stablecoin was blacklisted after a large amount of funds were hacked on the Polygon blockchain in November 2022.
Journal: Unstable Coins: Devaluation, Bankruptcy and Other Risks Ahead.
