The Reserve Bank of New Zealand (RBNZ) has announced that it will not propose a regulatory approach towards stablecoins and cryptocurrencies, but instead recommends increased vigilance. Director of Money and Cash, Ian Woolford, stated that “Issues raised by crypto-assets and other innovations do not fall neatly within agency boundaries. However, issues such as consumer and investor protection or potential commercial or regulatory barriers to entry do matter….”
The central bank came to this conclusion after receiving 50 submissions from different stakeholders as part of a consultative process that began in December 2022. The submissions reinforced the view that there are significant risks and opportunities, but also significant uncertainties about how the sector will develop and where the optimal balance will lie. This is why the RBNZ is not proposing a regulatory response at this point.
The focus of the process was on the potential uses of crypto-assets as money, and the RBNZ indicated its latest position on central bank digital currency (CBDC). They stated that “while we are exploring a potential CBDC, we have not made any decision about the need for one. If we do introduce a CBDC, this would not be to displace cash which would remain available.”
New Zealand has seen Binance register as a financial service provider, but Huobi ended derivatives trading services to the nation.