- The New Zealand Law Foundation has sponsored a study, stressing on crypto adoption.
- The study claims that New Zealand is falling behind in the crypto world.
- The study calls for a central-bank issued cryptocurrency.
The New Zealand law Foundation has thrown its weight behind the adoption of cryptocurrency and is now urging the New Zealand Government to do the same.
In a post on their official website, the Foundation spoke on the need for the government to establish a national cryptocurrency and also to put measures in place that will make the adoption and use of the digital currencies easier such as cryptocurrency exchanges.
This was published in a report called Regulating Cryptocurrencies in New Zealand by Alexandra Sims, Kanchana Kariyawasam and David Mayes.
In conclusion, the report recommended that New Zealand work towards becoming a blockchain and financial technology (fintech) hub.
From new cryptocurrency acceptance in Africa to its growing use in Asia, the world as a whole seems to have embraced cryptocurrency, each at different paces. According to the report endorsed by the New Zealand Law Foundation, New Zealand hasn’t embraced it fast enough and is falling behind its peers.
Principal researcher Alex Sims, Associate Professor of Commercial Law at the University of Auckland Business School, has stated that cryptocurrency is here to stay.
“But New Zealand has fallen behind countries we like to compare ourselves with, including Australia, the United Kingdom, and Japan. So now we need to live up to our reputation as nimble, agile and innovative and rapidly follow the lead of those other countries. That’s the only way we can maximize the opportunities that blockchain offers.”
What to do?
While the report also acknowledges the security concerns held by the general population, it states that proper regulations and the proper use of technology will enable the currencies to be used safely.
It also touches on the fact that cryptocurrency transactions are stored in a secure ledger, thus eliminating the need for buyers and sellers to update their ledgers and for middlemen to coordinate transactions. It was also stressed that the government needs to embrace not only blockchain technology but cryptocurrencies as well.
“While not all blockchain applications require the use of cryptocurrencies, blockchain will not reach its full potential if cryptocurrencies are unable to be used, or their use made unnecessarily difficult.” Professor Sims says.
Finally, recommendations are made for a central bank-issued cryptocurrency, the ability to pay for goods and services at home and abroad, and also that definite regulations be set up to prevent money laundering, fraud, and terrorism.