The Reserve Bank of New Zealand issued a statement today (Friday) notifying its intention to increase monitoring of stablecoins and crypto assets. However, the central bank does not believe in bringing regulatory oversight to the industry.
The regulatory clarification came after public input on the issues and risks of private money to the financial system and monetary sovereignty.
“We agree with the applicants that a regulatory approach is not required at this time, but increased vigilance is essential,” said Ian Woolford, RBNZ’s director of money and cash, in a statement released today (Friday). .
Before deciding on its stance, the central bank considered input from 50 contributors on crypto and decentralized finance. Stakeholders are digital currency advocacy group BlockchainNZ, blockchain company Ripple, and banks such as Westpac and Bank of New Zealand.
New forms of money such as cryptocurrencies and stablecoins create both opportunities and risks for New Zealanders and the financial system. Have your say now on these matters and how we should respond: https://t.co/RE9j0ryjVk# arbenezpic.twitter.com/yvcR2tjd9y
Reserve Bank of New Zealand (ReserveBankofNZ) February 10, 2023
“The submissions reinforce our view that there are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will evolve and where the optimal balance lies. We agree on the need for caution, which also reinforces the need for enhanced data and monitoring to build understanding Woolford added.
Confusion about jurisdiction?
It further highlighted that the RBNZ has no jurisdiction to regulate “crypto assets and other innovations.”
“However, issues such as consumer and investor protection or potential commercial or regulatory barriers to entry are important to our collective vision of a reliable and efficient billing and payment system that better meets the evolving needs of New Zealanders,” Woolford added.
Meanwhile, New Zealand’s Financial Markets Authority (FMA) issued several warnings against retail “volatile and risky” bitcoin investments. The cryptocurrency industry is also not regulated in the country.
The New Zealand central bank’s stance against imposing cryptocurrency regulations came when other global regulators were in line to gain control of the booming industry. The European Union has already passed the Markets in Crypto Assets Act (MiCA), while jurisdictions such as Hong Kong have also introduced progressive cryptocurrency regulations.
The Reserve Bank of New Zealand issued a statement today (Friday) notifying its intention to increase monitoring of stablecoins and crypto assets. However, the central bank does not believe in bringing regulatory oversight to the industry.
The regulatory clarification came after public input on the issues and risks of private money to the financial system and monetary sovereignty.
“We agree with the applicants that a regulatory approach is not required at this time, but increased vigilance is essential,” said Ian Woolford, RBNZ’s director of money and cash, in a statement released today (Friday). .
Before deciding on its stance, the central bank considered input from 50 contributors on crypto and decentralized finance. Stakeholders are digital currency advocacy group BlockchainNZ, blockchain company Ripple, and banks such as Westpac and Bank of New Zealand.
New forms of money such as cryptocurrencies and stablecoins create both opportunities and risks for New Zealanders and the financial system. Have your say now on these matters and how we should respond: https://t.co/RE9j0ryjVk# arbenezpic.twitter.com/yvcR2tjd9y
Reserve Bank of New Zealand (ReserveBankofNZ) February 10, 2023
“The submissions reinforce our view that there are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will evolve and where the optimal balance lies. We agree on the need for caution, which also reinforces the need for enhanced data and monitoring to build understanding Woolford added.
Confusion about jurisdiction?
It further highlighted that the RBNZ has no jurisdiction to regulate “crypto assets and other innovations.”
“However, issues such as consumer and investor protection or potential commercial or regulatory barriers to entry are important to our collective vision of a reliable and efficient billing and payment system that better meets the evolving needs of New Zealanders,” Woolford added.
Meanwhile, New Zealand’s Financial Markets Authority (FMA) issued several warnings against retail “volatile and risky” bitcoin investments. The cryptocurrency industry is also not regulated in the country.
The New Zealand central bank’s stance against imposing cryptocurrency regulations came when other global regulators were in line to gain control of the booming industry. The European Union has already passed the Markets in Crypto Assets Act (MiCA), while jurisdictions such as Hong Kong have also introduced progressive cryptocurrency regulations.