A ministry within the New Zealand government that is tasked with controlling the national economy has outlined a strategic approach to cryptocurrency that involves embracing the innovations it brings. The regulator also put various strategies in place which seek to promote the growth of digital assets in the country.

Minister advocates for proactive crypto measures

The minister of commerce and consumer affairs of New Zealand, Andrew Bayly, suggested that a new approach for the country to digital assets and blockchain technology needs to be developed as it currently does not, unlike many other countries, explore experimental methods which would ultimately improve the safety and security of the citizens’ data. He advocated the government to provide policies and supportive measures that can accelerate the crypto industry development and address some potential associated risks.

In response to the inquiries by the parliamentary Finance and Expenditure Committee into cryptocurrencies, Bayly’s office said:

“The actions at hand could be determining factor whether New Zealand is on a pace with the world or further behind. The wait and see stance risks Missing New Zealand on the benefits that the digital asset business brings.”

Central Bank proposes comprehensive framework

The advisers of the central bank made eight overall pumping out proposals that could counterbalance the shortcoming in the global crypto wave. In the proposals outlined, it is imperative to adopt policies and legislation that encourage the development of digital assets and blockchains, which should also include stronger collocation among the government and the private sector players so as to bridge the skills gap in digital assets and blockchains.The rest of the recommendations, such as improved training and educational resources and adoption of appropriate tax incentives, could also be considered given that they help to make the environment more friendly.

But what is interesting is that most of the recommendations are long-term growth strategies, not overnight solutions. It was suggested an urgent step to have a central supervising framework for crypto and digital assets, as well as a clearly defined global regulatory approach to this new asset class. This is different from what is told by the Governor of the Reserve Bank of New Zealand, Adrian Orr.

On Feb. 12, Orr told a parliamentary finance committee that CBDCs are not a true substitute for fiat money and “are not stable.”