New Zealand Dollar Stablecoin (NZDD) was introduced by Easy Crypto in collaboration with an Australian blockchain development company.
Through a collaboration with Australian blockchain development company Labrys and New Zealand cryptocurrency exchange Easy Crypto, a dollar-pegged stablecoin has gone live in New Zealand.
The NZDD will be governed by the New Zealand Financial Markets Authority and backed 1:1 with cash in trust, according to a statement released by Labrys and Easy Crypto on November 22.
Although it is now only available on Ethereum, it will soon be available on Polygon, the BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
Easy Crypto launched the stablecoin because it said that utilizing tokens fixed to the US dollar made it more difficult for New Zealanders to maximize their profits.
The CEO and co-founder of Easy Crypto, Janine Grainger, asserted that the NZDD will “move NZ forward as a nation, giving us a digital, programmable currency that can do everything the NZD can do” and that it would close the gap with traditional banking.
By enrolling the user’s “trusted social circle” with portions of the key rather than a seed phrase, Easy Crypto developed a multicurrency self-custody wallet secured by multiparty computation cryptography in addition to the stablecoin.
The New Zealand parliament commissioned a study in August that said that the nation had adopted a “agile” approach to cryptocurrency legislation. It suggests that the government develop “coherent and consistent guidance on the treatment of digital assets under current law” and that issues be “addressed as they arise.”
A previous attempt to introduce a stablecoin tied to the New Zealand currency was the 2021 introduction of $NZDs by Techemyny, an Australian financial services business.
However, following the November 2022 theft of the DFX Finance protocol, which left a sizable amount of cash stranded on the Polygon blockchain, the bridge that the stablecoin utilized was blacklisted in 2022.
