The New Zealand government ministry responsible for managing the national economy has presented a strategic plan for dealing with cryptocurrency, which involves embracing the innovations it brings. The regulatory body has also implemented various strategies aimed at promoting the growth of digital assets in the country.
Andrew Bayly, the Minister of Commerce and Consumer Affairs, has proposed that New Zealand needs to develop a new approach to digital assets and blockchain technology. Unlike many other countries, New Zealand has not explored experimental methods that could enhance the safety and security of citizens’ data. Bayly has urged the government to implement policies and supportive measures that can accelerate the development of the crypto industry and address potential risks.
In response to inquiries from the parliamentary Finance and Expenditure Committee about cryptocurrencies, Bayly’s office stated:
“The central bank has put forward eight comprehensive proposals to counterbalance the shortcomings in the global crypto wave. These proposals emphasize the importance of adopting policies and legislation that encourage the development of digital assets and blockchains. They also highlight the need for greater collaboration between the government and private sector players to bridge the skills gap in digital assets and blockchains. Other recommendations, such as improved training and educational resources and the adoption of appropriate tax incentives, could also be considered to create a more favorable environment.”
However, it is worth noting that most of these recommendations are long-term growth strategies, rather than immediate solutions. It has been suggested that a central supervisory framework for crypto and digital assets is urgently needed, along with a clearly defined global regulatory approach to this new asset class. This differs from the views expressed by Adrian Orr, the Governor of the Reserve Bank of New Zealand.
During a parliamentary finance committee meeting on February 12th, Orr stated that central bank digital currencies (CBDCs) are not a true substitute for fiat money and are not stable.
