A stablecoin pegged to the New Zealand dollar has been launched through a partnership with New Zealand crypto exchange Easy Crypto and Australian blockchain development firm Labrys.
In a Nov. 22 announcement, Labrys and Easy Crypto said NZDD will be backed 1:1 with cash held in trust and regulated by the New Zealand Financial Markets Authority.
It is initially available on Ethereum, but has plans to expand to Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase's Base.
Easy Crypto was motivated to launch the stablecoin because it claimed that it was more difficult for New Zealanders to maximize their profits when using tokens pegged to the US dollar.
Easy Crypto co-founder and CEO Janine Grainger said the NZDD bridges the gap with traditional finance, stating that it would โtake New Zealand forward as a nation, giving us a programmable digital currency that can do everything the NZD can do.โ ".
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Along with the stablecoin, Easy Crypto introduced a multi-currency self-custody wallet protected by multi-party computational cryptography by recruiting the user's "trusted social circle" with parts of the key instead of a seed phrase.
Stay tuned for the next episode where Easy Crypto will talk about the new wallet and new #stablecoins!
#NZDD #invest #alternative #assets #realdiversification pic.twitter.com/Wt9EPq1Gri- Darcy Ungaro (@UngaroDarcy) November 21, 2023
An August report commissioned by New Zealand's parliament said the country has taken an "agile" approach to cryptocurrencies regulation. It recommends that issues "be addressed as they arise and that the government create" coherent and consistent guidance on the treatment of digital assets under current law.
Previous attempts to launch a stablecoin pegged to the New Zealand dollar include the 2021 release of New Zealand dollars by Australian financial services provider Techemyny.
However, in 2022, the bridge used by the stablecoin was blacklisted after the DFX Finance protocol hack in November 2022, leaving a large portion of the funds stranded on the Polygon blockchain.
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