A New Zealand ministry focused on shaping the nation’s economic strategy has proposed embracing cryptocurrency innovations in a more open manner. The ministry has put forth several recommendations to foster the growth of digital assets within the country.
Andrew Bayly, the Minister of Commerce and Consumer Affairs of New Zealand, has advised revamping the country’s slow approach towards experimenting with and adopting innovations in digital assets and blockchain technology. He has urged the government to support the development of the crypto industry and consider appropriate policies to manage associated risks.
In response to inquiries from the parliamentary Finance and Expenditure Committee regarding cryptocurrencies, Bayly’s office stated that the ministry’s advisors have made eight key recommendations to help New Zealand catch up with the global crypto trend. These recommendations include adopting policies and regulations that encourage the development of digital assets and blockchain, promoting collaboration between the government and industry players, and addressing skills shortages in the digital asset and blockchain sectors through immigration.
The list of friendlier approaches to crypto also includes recommendations such as developing training and educational resources, offering tax incentives, implementing Anti-Money Laundering provisions, and continuing to design an in-house central bank digital currency (CBDC).
Bayly emphasized that most of these recommendations are long-term in nature and stressed the need for a coordinated global regulatory approach and supervisory frameworks for digital and crypto assets.
Interestingly, Bayly’s recommendation for an in-house CBDC contradicts the viewpoint of the Reserve Bank of New Zealand Governor, Adrian Orr. On February 12, Orr stated to a parliamentary finance committee that CBDCs are not a true substitute for fiat money and are not stable.
Orr argued against the use of Bitcoin as a means of exchange, a store of value, or a unit of account when asked about the Reserve Bank of New Zealand’s concerns about cryptocurrencies. He firmly stated that cryptocurrencies are speculative coins, not currency or central bank cash.