The deputy governor of New Zealand's Reserve Bank (RBNZ) has said the institution is "not threatened" by the rise of bitcoin and digital currencies.
According to a report in stuff.co.nz, deputy governor Grant Spencer made the comments this morning at Payments NZ, a two-day international payments industry conference in Auckland.
Spencer's comments are in contrast to those of other central bank representatives over the course of this year, most of which have concerned warnings of bitcoin's investment risk and/or lack of legal tender status.
"I do not doubt that future digital currencies will become more realistic substitutes for cash," he said, also mentioning that, so far, bitcoin seems to "behave more like a commodity than a currency".
Of greater concern to the deputy governor were new players' involvement and security in the electronic payments industry in general, whether cryptocurrency-related or not.
The past 30 years have seen payments move from being primarily cash and cheques to more contactless, online and mobile phone-based systems.
Increased participation and new technologies brought with them increased operational risks, Spencer added, which could be disruptive to the economy. The general payments industry would have to manage these risks while still nurturing innovation and efficiency.
The central banks of both New Zealand and neighboring Australia did issue mild cautions about bitcoin in December last year, but at the same time described the technology as interesting.
Then in July this year, RBNZ deputy governor and head of operations Geoff Bascand described digital currencies as a "challenge to the form and provenance" of money that could supplant cash, despite some problems with price volatility.
New Zealand is often noted for having one of the world's most liberal economies, usually placing in the top five of the world Index of Economic Freedom along with Hong Kong, Singapore, Australia and Switzerland.
Notably, from 29th–30th November, the country will host its first bitcoin conference, Bitcoin South, in the resort town of Queenstown.
According to a report in stuff.co.nz, deputy governor Grant Spencer made the comments this morning at Payments NZ, a two-day international payments industry conference in Auckland.
Spencer's comments are in contrast to those of other central bank representatives over the course of this year, most of which have concerned warnings of bitcoin's investment risk and/or lack of legal tender status.
"I do not doubt that future digital currencies will become more realistic substitutes for cash," he said, also mentioning that, so far, bitcoin seems to "behave more like a commodity than a currency".
Of greater concern to the deputy governor were new players' involvement and security in the electronic payments industry in general, whether cryptocurrency-related or not.
The past 30 years have seen payments move from being primarily cash and cheques to more contactless, online and mobile phone-based systems.
Increased participation and new technologies brought with them increased operational risks, Spencer added, which could be disruptive to the economy. The general payments industry would have to manage these risks while still nurturing innovation and efficiency.
'Non-instrusive' regulation
The RBNZ preferred a "non-intrusive" and "low-key" regulatory approach to digital currencies, Spencer said, as opposed to some foreign central banks which had strengthened their regimes lately.The central banks of both New Zealand and neighboring Australia did issue mild cautions about bitcoin in December last year, but at the same time described the technology as interesting.
Then in July this year, RBNZ deputy governor and head of operations Geoff Bascand described digital currencies as a "challenge to the form and provenance" of money that could supplant cash, despite some problems with price volatility.
New Zealand is often noted for having one of the world's most liberal economies, usually placing in the top five of the world Index of Economic Freedom along with Hong Kong, Singapore, Australia and Switzerland.
Notably, from 29th–30th November, the country will host its first bitcoin conference, Bitcoin South, in the resort town of Queenstown.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.