A government ministry in New Zealand responsible for managing the national economy has revealed its strategic plan for dealing with cryptocurrency, which involves embracing the innovative aspects it brings. The regulatory body has also implemented various strategies to foster the growth of digital assets within the country.
Andrew Bayly, the Minister of Commerce and Consumer Affairs in New Zealand, has proposed the need for a fresh approach to digital assets and blockchain technology in the country. Unlike many other nations, New Zealand has not explored experimental methods that could enhance the safety and security of citizens’ data. Bayly advocates for 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 regarding cryptocurrencies, Bayly’s office stated:
“The advisers of the central bank have put forward eight comprehensive proposals to counterbalance the shortcomings in the global crypto trend. These proposals emphasize the need to adopt policies and legislation that encourage the growth of digital assets and blockchains. They also stress the importance of stronger collaboration between the government and private sector players to bridge the skills gap in this field. Additionally, the recommendations highlight the significance of improved training and educational resources, as well as the adoption of suitable tax incentives, to create a more favorable environment.”
It is worth noting that most of these recommendations are long-term growth strategies rather than quick fixes. However, it is suggested that an urgent step be taken to establish a central supervisory framework for crypto and digital assets, along with a clearly defined global regulatory approach for this new asset class. This differs from the viewpoint expressed by Adrian Orr, the Governor of the Reserve Bank of New Zealand.
On February 12th, Orr informed a parliamentary finance committee that central bank digital currencies (CBDCs) are not a true replacement for traditional currency and are not stable.