BlockchainNZ challenges Reserve Bank’s ‘oxymoron’ stablecoin claim!

BlockchainNZ challenges the Reserve Bank of New Zealand’s (RBNZ) assertion that stablecoins are ‘oxymorons’, emphasising the transformative potential of blockchain technology for our economy,

“By embracing blockchain technology and digital currencies, Aotearoa New Zealand can position itself as a leader in the global economy and unlock new opportunities for prosperity and growth,” says BlockchainNZ’s chair Ben Rose in response to the RBNZ’s governor Adrian Orr’s recent comments.

Earlier this week, RBNZ’s governor Adrian Orr told a parliamentary committee in Wellington that stablecoins are the ‘the biggest misnomers’ and ‘oxymorons.’ 

“While the remarks by the Reserve Bank highlight the importance of oversight and caution in our rapidly evolving landscape, it’s essential to recognise the transformative potential that stablecoins and other blockchain-based innovations offer,” says Ben.

“BlockchainNZ believes that New Zealand must keep pace with global developments in digital finance to remain competitive on the international stage. The internet continues to evolve and our financial infrastructure must adapt to meet the needs of the modern economy.

“By embracing technologies like blockchain, Aotearoa stands to gain significant advantages in overcoming geographical barriers, expanding market reach and fostering economic growth,” he says.

“We acknowledge governor Orr’s points regarding stability and regulatory concerns surrounding stablecoins. However, it’s important to recognise that stablecoins represent an innovative solution to inefficiencies in traditional banking systems, offering multiple benefits. For example, reduced transaction costs, increased financial inclusion and enhanced privacy,” says BlockchainNZ’s executive director, Alison Mackie.

“It’s crucial to understand that currency stability is a relative concept influenced by various factors, including market dynamics, government policies and economic indicators. Like any currency, stablecoins may experience fluctuations but they provide a valuable tool for mitigating volatility and facilitating efficient cross-border transactions,” she says.

“Bitcoin’s emergence, for example, highlights the growing demand for alternative asset classes in an era of economic uncertainty. As central banks grapple with the challenges of monetary policy, digital assets offer new avenues for diversification and wealth preservation,” says Alison.

BlockchainNZ reaffirms its commitment to collaborating with regulators, policymakers and industry stakeholders to foster innovation and drive positive change in the financial sector by embracing blockchain and digital currencies. 

“Our members have actively engaged with the Reserve Bank in workshops and consultations regarding central bank digital currencies (CBDC), and this clearly demonstrates our commitment to constructive dialogue and collaboration in shaping the future of money. We welcome the opportunity for further discussion with the RBNZ,” she says.

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For further comment or interview, please contact:

Alison Mackie
Executive Director
BlockchainNZ
alison.mackie@techalliance.nz 
Mobile 027 359 3938 

Ben Rose
Chair
BlockchainNZ
ben.rose@binance.com
Mobile: 022 172 1980

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About BlockchainNZ: BlockchainNZ is dedicated to promoting the adoption and growth of blockchain technology in New Zealand. For further information visit https://staging.blockchain.org.nz/

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