New Zealand’s cryptocurrency exchange, Easy Crypto, has joined forces with Australian blockchain development firm Labrys to introduce the New Zealand Dollar Stablecoin (NZDD). This stablecoin is pegged to the New Zealand dollar (NZD) and has officially been launched. The NZDD is backed on a 1:1 basis with cash held in trust and falls under the regulatory oversight of the New Zealand Financial Markets Authority.
Initially deployed on the Ethereum blockchain, the NZDD has plans to expand its presence to other blockchain networks, including Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
The motivation behind launching the NZDD stems from the belief that using U.S. dollar-pegged tokens makes it challenging for New Zealanders to maximize their profits. Easy Crypto’s co-founder and CEO, Janine Grainger, emphasized that the NZDD addresses this issue by bridging the gap between traditional finance and the digital realm. Grainger envisions the NZDD as a means to propel New Zealand forward into the digital age, offering a programmable currency capable of all the functions of the NZD.
In conjunction with the stablecoin launch, Easy Crypto has introduced a multicurrency self-custody wallet with advanced security features. This wallet leverages multiparty computation cryptography and employs the concept of a “trusted social circle” to safeguard user assets, replacing the traditional seed phrase approach.
A report commissioned by New Zealand’s parliament in August highlighted the country’s agile approach to cryptocurrency regulation. The report recommended addressing issues as they arise and providing clear and consistent guidance on the treatment of digital assets within existing legal frameworks.
Previous attempts to launch a New Zealand dollar-pegged stablecoin include the 2021 introduction of $NZDs by Australian financial services provider Techemyny. However, in 2022, the bridge used by this stablecoin was blacklisted following the hack of the DFX Finance protocol, leaving a significant portion of funds stranded on the Polygon blockchain.
