A ministry in New Zealand that focuses on shaping the country’s economic strategy has suggested adopting a more accommodating approach to cryptocurrency innovations. The ministry has put forward several recommendations aimed at promoting the growth of digital assets within the nation.
Andrew Bayly, the Minister of Commerce and Consumer Affairs, has recommended that the country revamp its 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 stated that the ministry’s advisers have made eight key recommendations for New Zealand to catch up with the global crypto trend. These recommendations involve implementing policies and regulations that encourage the advancement of digital assets and blockchain, fostering greater collaboration between the government and industry players, and addressing skill shortages in the digital assets and blockchain sectors through immigration.
Additional recommendations include creating training and educational resources, offering tax incentives, implementing Anti-Money Laundering (AML) provisions, and continuing the design work on a central bank digital currency (CBDC). Bayly emphasized that most of the recommendations are long-term in nature and stressed the need for a coordinated global regulatory approach and supervisory frameworks for digital and crypto assets.
It is worth noting that Bayly’s recommendation for an in-house CBDC contradicts the viewpoint of the New Zealand Central Bank governor Adrian Orr. Orr stated in a parliamentary finance committee meeting on February 12th that CBDCs are not a true substitute for fiat money and are not stable. He argued that when it comes to cryptocurrencies, Bitcoin is not a means of exchange, store of value, or unit of account. He emphasized that transparency and clarity are crucial and concluded that cryptocurrencies are speculative coins, not currency or central bank cash.
In other news, a recent report revealed that 1 in 6 new Base meme coins are scams, with 91% of them having vulnerabilities.