A ministry in New Zealand that focuses on shaping the country’s economic strategy has proposed a more accommodating approach towards cryptocurrency innovations. The ministry has put forth several recommendations aimed at promoting the growth of digital assets within the country.
Andrew Bayly, the Minister of Commerce and Consumer Affairs, has suggested revamping the country’s slow approach to experimenting with and adopting 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 Finance and Expenditure Committee regarding cryptocurrencies, Bayly’s office has made several recommendations. These include adopting policies and regulations that encourage the development of digital assets and blockchain, fostering collaboration between the government and industry players, and addressing skill shortages in digital assets and blockchain through immigration.
Other recommendations, such as developing training and educational resources, providing tax incentives, implementing Anti-Money Laundering provisions, and continuing work on an in-house central bank digital currency (CBDC), have also been proposed as friendlier approaches to crypto.
Bayly has emphasized that most of these recommendations are long-term in nature and highlighted the need for a coordinated global regulatory approach and supervisory frameworks for digital and crypto assets.
However, Bayly’s recommendation for an in-house CBDC contradicts the viewpoint of the New Zealand Central Bank governor, Adrian Orr. Orr has stated that CBDCs are not a true substitute for fiat money and are not stable. He believes that Bitcoin is not a means of exchange, a store of value, or a unit of account, and considers them to be speculative coins rather than currency or central bank cash.
In other news, it has been reported that 1 in 6 new Base meme coins are scams, with 91% of them having vulnerabilities.