A New Zealand government ministry dedicated to shaping the country’s economic strategy has suggested adopting a more accommodating approach towards cryptocurrency innovations. The ministry has put forward several recommendations aimed at promoting the growth of digital assets in the nation.
Andrew Bayly, the Minister of Commerce and Consumer Affairs in New Zealand, has proposed overhauling the country’s slow approach to experimenting with and adopting digital assets and blockchain technology. He has called on 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 put New Zealand back on track with the global crypto movement. These recommendations include adopting policies and regulations to encourage the development of digital assets and blockchain, facilitating greater collaboration between the government and industry players, and addressing skills shortages in the digital assets and blockchain sectors through immigration.
Other recommendations that have been proposed to promote a friendlier approach to crypto include developing training and educational resources, offering tax incentives, implementing Anti-Money Laundering provisions, and continuing to work on designing an in-house central bank digital currency (CBDC).
Bayly has emphasized that most of the recommendations are long-term in nature and has stressed the importance of 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 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. He also argued that Bitcoin is not a means of exchange, a store of value, or a unit of account, dismissing concerns raised by the Reserve Bank of New Zealand about cryptocurrencies.
In summary, the New Zealand ministry has proposed adopting a more favorable stance towards cryptocurrency innovations, with recommendations including policy and regulation development, collaboration between the government and industry, and addressing skills shortages. However, there is a difference in opinion between Bayly and Orr regarding the use of CBDCs and the stability of cryptocurrencies.