The statement titled “RBNZ ramps up monitoring of stablecoins and cryptoassets” adjoined the release of submissions to the central bank’s Future of Money issues paper.
“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 develop and where the optimal balance will lie.
“We agree that caution is needed, which also reinforces the need for enhanced data and monitoring to build understanding.”
The summary said some submissions, including from the cryptocurrency industry, argued regulation was overdue, especially in the wake of the FTX scandal.
A monitoring roadmap in the summary outlined steps the RBNZ would likely take over the next 18 months, with immediate work to include establishing the current uptake of crypto assets in New Zealand.
Following that, it would assess how popular it was among “priority areas”, including Māori and financial institutions.
By Christmas 2024, the RBNZ outlined it would review the need for additional monitoring alongside other regulators.
When asked about these steps, specifically data sharing, an RBNZ spokesperson clarified that these intentions were “conceptual” and added: “It definitely should not be read as being about transaction monitoring.”
Stablecoins are cryptoassets where its value is pegged to existing fiat currency, such as Tether or USD Coin, which are both tied to the United States dollar.
Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
