Easy Crypto has introduced the New Zealand Dollar Stablecoin (NZDD) in partnership with an Australian blockchain development firm. Moreover, Labrys and Easy Crypto made a joint announcement on November 22.
However, in this announcement, they revealed that NZDD will be pegged 1:1 to cash held in trust. Furthermore, the operations of NZDD will be regulated by the New Zealand Financial Markets Authority.
Currently, the stablecoin is live on the Ethereum network, and there are future plans for expansion to Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
Easy Crypto’s Vision
Janine Grainger, co-founder, and CEO of Easy Crypto, is motivated by the conviction that New Zealanders face challenges in maximizing profits with U.S. dollar-pegged tokens. Moreover, she has expressed the goal of NZDD to bridge the gap with traditional finance.
Notably, Grainger emphasized a mission for the stablecoin. The goal is to propel New Zealand forward by providing a digital, programmable currency. This currency is designed to replicate all the functionalities of the NZD.
Furthermore, in addition to the stablecoin launch, Easy Crypto introduced a multi-currency self-custody wallet secured by multiparty computation cryptography.
However, this innovative security measure involves leveraging the user’s “trusted social circle” by assigning them parts of the cryptographic key, as opposed to relying on a conventional seed phrase.
New Zealand Adopts Agile Crypto Regulation, Faces Stablecoin Challenges in 2022
Notably, In August, a parliamentary report commissioned by New Zealand spotlighted the country’s “agile” approach to crypto regulation.
The report recommended a continuous approach to addressing issues as they arise. Emphasizing the necessity, it called on the government to establish coherent and consistent guidance on the treatment of digital assets within the existing legal frameworks.
Notably, there were previous attempts to introduce a NZ dollar-pegged stablecoin. In 2021, Australian financial services provider Techemyny launched $NZDs.
However, complications emerged in 2022. The stablecoin’s bridge was blocklisted after the DFX Finance protocol hack in November. Subsequently, this incident left a substantial portion of funds stranded on the Polygon blockchain.
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