New Zealand's Ministry of Economic Strategy has suggested taking a more lenient stance towards cryptocurrency innovation. The ministry has published a series of recommendations aimed at encouraging the growth of digital assets in the country.
New Zealand's Minister of Trade and Consumer Affairs Andrew Bailey recommended a review of the country's soft approach to experimentation and innovation in #digital assets and blockchain technology. He called on the government to develop appropriate policies to support the development of the crypto industry and manage the risks associated with it.
In response to an inquiry from the Finance and Expenditure Committee on #cryptocurrencies , Bailey's office said:
"With the current 'wait and see' approach, New Zealand may miss out on the benefits of the development of the digital asset industry.
Other recommendations on the list of cryptocurrency-friendly approaches included the development of training and educational resources, tax incentives, anti-money laundering (AML) rules and continued work on the central bank's own digital currency (CBDC).
Bailey noted that most of the recommendations are long-term in nature and emphasize the need for a coordinated global approach to regulation and oversight mechanisms for digital and crypto assets.
Mr. Bailey's recommendation to create its own CBDC contradicts the views of Adrian Orr, Governor of the Central Bank of New Zealand.
On Feb. 12, Mr. Orr told a parliamentary monetary affairs committee that CBDCs are not a true substitute for fiat money and are "not stable.
Asked about the Reserve Bank of New Zealand's (RBNZ) concerns about cryptocurrencies, Mr. Orr said #bitcoin (BTC) was neither a medium of exchange, store of value nor a unit of account. He added:
"I think that's the biggest misconception, as with stable coins. Stable coins are not stable coins.
"The first thing we can do is to be as transparent and clear as possible. These are speculative coins, not currency or central bank cash," he concluded.
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