Apr 10, 2024 at 05:48Andrew Bayly, New Zealand’s Minister of Commerce and Consumer Affairs, has raised alarms about the country’s cautious approach towards cryptocurrency, warning of potential missed opportunities for economic growth and innovation.
In response to growing interest in cryptocurrencies, New Zealand’s economic strategy ministry has proposed a more proactive stance towards digital assets. Bayly emphasized the importance of embracing innovation in the crypto sector and suggested implementing policies to manage associated risks effectively.
Expressing concerns over the current “wait and see” approach, Bayly’s office stressed the need for New Zealand to capitalize on the benefits offered by the digital asset industry.
The ministry’s recommendations include fostering collaboration between government and industry stakeholders, addressing skills shortages through immigration, and providing tax incentives to encourage crypto development.
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Additionally, Bayly suggested exploring the potential of a central bank digital currency (CBDC) and enhancing regulatory frameworks to ensure transparency and stability in the crypto market.
However, Bayly’s proposal for a CBDC contradicts the stance of the Reserve Bank of New Zealand Governor Adrian Orr, who expressed skepticism about the stability of CBDCs and criticized cryptocurrencies’ speculative nature.
Orr highlighted the volatility of cryptocurrencies like Bitcoin, dismissing them as unreliable substitutes for fiat currency and cautioning against the misconception of stablecoins’ stability.
Despite differing opinions within New Zealand’s regulatory bodies, Bayly emphasized the importance of transparency and a coordinated global approach in regulating the crypto market.
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