Could the New Zealand dollar-pegged stablecoin be the next big thing in the crypto market? Recently, the cryptocurrency landscape in New Zealand took a significant leap forward with the introduction of a stablecoin pegged to the New Zealand dollar. This development is the result of a collaboration between Easy Crypto, a local cryptocurrency exchange, and Labrys, an Australian blockchain development company.
Understanding the New Stablecoin
The new stablecoin, known as NZDD, is backed on a 1:1 ratio with cash held in trust and is regulated by the New Zealand Financial Markets Authority. Initially launched on the Ethereum network, the stablecoin has plans to branch out to other platforms such as Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
Easy Crypto was driven to introduce the stablecoin as it found that New Zealanders were finding it challenging to maximize their profits using U.S. dollar-pegged tokens. According to Janine Grainger, Easy Crypto’s co-founder and CEO, the NZDD bridges the gap with traditional finance and will “propel NZ forward as a nation, offering us a digital, programmable currency that can do everything the NZD can do.”
Additional Developments
Alongside the launch of the stablecoin, Easy Crypto also rolled out a multicurrency self-custody wallet. This wallet is secured by multiparty computation cryptography, which involves dividing the key among the user’s “trusted social circle” instead of using a seed phrase.
Keep an eye out for an upcoming episode with Easy Crypto discussing the new wallet and the new stablecoin. This is an exciting development in the world of alternative assets and investing.
Regulation and Previous Attempts
New Zealand’s approach to crypto regulation has been described as “agile” by a report commissioned by the country’s parliament in August. The report recommended addressing issues as they arise and urged the government to provide “coherent and consistent guidance on the treatment of digital assets under current law.”
Prior attempts to launch a New Zealand dollar-pegged stablecoin include the 2021 introduction of $NZDs by Australian financial services provider Techemyny. However, in 2022, the bridge used by the stablecoin was blacklisted following the hack of the DFX Finance protocol, resulting in a significant portion of funds being stranded on the Polygon blockchain.
With the advent of the NZDD, it’s clear that the world of cryptocurrency is continuously evolving. For those interested in tracking these developments, the cryptoview.io application offers an excellent platform to monitor the crypto market, including the latest on the New Zealand dollar-pegged stablecoin.
