Reserve Bank of New Zealand eyes off use of crypto

New Zealand’s central bank is considering a digital currency with hopes that it could be used as a monetary policy tool

As the use of hard cash continues to decline across the country, the bank is turning to the public to voice their opinions on digital coins.

The Reserve Bank says “the declining use, acceptance and availability of cash in New Zealand, and emerging innovations in private money” are prompting the notion.

Stablecoins are a trype of cryptocurrency that are tied to a traditional currency, in this case almost certainly the fiat New Zealand Dollar. 

As the name suggests, this makes their value relatively stable.

Beneficially too, Stablecoins also less likely to be able to be impacted by famous people’s public comments.

Bitcoin, the world’s largest cryptocoin, went from being worth US$52,700 to $40,500 in just 16 days earlier this month.

The digital currency could help to support the New Zealand dollar while being interchangeable with cash.

This would help the bank remain relevant in the future and improve cross-border payment efficiency and resilience.