Reserve Bank of New Zealand Boosts Monitoring of Cryptocurrencies and Stablecoins, Delays Regulatory Action

Join Our Telegram channel to stay up to date on breaking news coverage

The Reserve Bank of New Zealand (RBNZ) has announced its decision to enhance monitoring of cryptocurrencies and stablecoins, according to a statement released by the central bank on June 30.

Ian Woolford, the Director of Money and Cash at RBNZ, stated that while the current situation does not necessitate immediate regulatory measures, increased vigilance is required.

Reserve Bank of New Zealand Increases Monitoring of Cryptocurrencies and Stablecoins

The move by RBNZ is in line with the feedback received from industry stakeholders, as highlighted in the consultation paper published by the central bank last year. twRipple, a blockchain-based payment protocol, and Westpac, one of Australia’s prominent banks, were among the respondents to the RBNZ’s consultation paper.

Reserve Bank of New Zealand

Woolford acknowledged the significant risks and opportunities associated with cryptocurrencies and stablecoins, as emphasized by the stakeholders’ responses.

He emphasized the importance of caution in dealing with these emerging assets, which further emphasizes the need for comprehensive data collection and monitoring to develop a deeper understanding.

Nevertheless, RBNZ has chosen a wait-and-watch approach regarding the regulation of cryptocurrencies. Woolford believes that effective regulation requires global harmonization, and as other countries implement their own regulatory frameworks, best practices may become clearer.

During this interim period, RBNZ intends to collaborate with regulatory agencies through the Council of Financial Regulators to foster healthy growth in the market. Woolford also expressed the central bank’s commitment to engaging with industry stakeholders to address emerging issues related to cryptocurrencies.

In New Zealand, cryptocurrencies are treated as personal property under existing legislation, subjecting them to income tax.

Woolford highlighted that the challenges posed by cryptocurrencies transcend the boundaries of individual agencies. However, he emphasized that ensuring investor protection and addressing regulatory barriers to entry are crucial for establishing a reliable and efficient money and payment system.

While regulators worldwide are actively seeking to regulate the crypto industry, the Reserve Bank of New Zealand has opted against implementing immediate regulations. The European Union has already enacted the Markets in Crypto Assets (MiCA) law, and jurisdictions such as Hong Kong have introduced progressive crypto regulations.

By intensifying its monitoring efforts for stablecoins and crypto-assets, the Reserve Bank of New Zealand aims to strike a balance between risk mitigation and facilitating the growth of this evolving industry.

Crypto influencer Keyur Rohit came out with a tweet stating other reasons behind the Reserve Bank saying no to regulations right now.

Major Banks and Swift Collaborate to Enhance Blockchain Interoperability

Major banks and the global financial communication network, Swift, are embarking on a collaborative effort to explore blockchain interoperability for institutional customers. The initiative aims to enable permissioned bank-owned blockchains to communicate with public blockchains like Ethereum.

Enhance Blockchain Interoperability

Participants include prominent financial institutions such as Citi, Lloyds Banking Group, BNP Paribas, and BNY Mellon, with Chainlink developing the bridging technology.

Swift acknowledges the increasing interest of institutional investors in tokenized assets but highlights the lack of interoperability among blockchain networks as a significant challenge.

The upcoming test phase will focus on three specific use cases, including transfers between wallets on the same public blockchain network, transfers from public to permissioned blockchains, and transfers between different public blockchains.

Chainlink’s role is essential in securely connecting the Swift network to the Ethereum Sepolia network, while its Cross-Chain Interoperability Protocol (CCIP) aims to achieve complete interoperability between different blockchains.

Despite SEC lawsuits, banks persist in pursuing blockchain infrastructure solutions, recognizing long-term potential. Swift and client banks foresee multiple blockchain platforms for diverse customer segments, emphasizing interoperability to drive scalability.

Security remains a challenge for cross-blockchain bridges, but Chainlink addresses this by implementing an active risk management network (ARM network) to monitor bridges for misbehavior.

The collaboration aims to gradually increase over time as more banks engage and private chains connect to public ones. The efforts of institutions like Société Générale, deploying a stablecoin on Ethereum, indicate growing interest and adoption in the banking sector.

These technical development showcase growing receptiveness toward blockchain adoption. It means that early movers may have the most to earn by participating in crypto presales. The best one running right now is Wall Street Memes, which has already raised more. than $11.5 million at press time.

Related Articles

  1. How to Buy Ethereum?
  2. Coinbase CEO Criticizes SEC’s Crypto Regulation for Impeding American Innovation
  3. Regulatory Uncertainties and Legal Actions Shake Investor Confidence: 10-Week Streak To Break?

Wall Street Memes - Next Big Crypto

Rating

Wall Street Memes
  • Early Access Presale Live Now
  • Established Community of Stocks & Crypto Traders
  • Featured on BeInCrypto, Bitcoinist, Yahoo Finance
  • Rated Best Crypto to Buy Now In Meme Coin Sector
  • Team Behind OpenSea NFT Collection - Wall St Bulls
  • Tweets Replied to by Elon Musk
Wall Street Memes
Learn More

Join Our Telegram channel to stay up to date on breaking news coverage

Comments

Post a Comment

Popular posts from this blog

Elon Musk Denies Talks to Raise $3 Billion to Pay Twitter Debt Elon Musk Denies Talks to Raise $3 Billion to Pay Twitter Debt

Image
The Wall Street Journal reported that Elon Musk is in talks to raise $3 billion to pay off the substantial Twitter debt looming over the platform. The report states that Musk is exploring potential fundraising in an effort to begin paying back some of the $13 billion in debts that are connected to the social media platform. The report notes that Musk and his representatives have been in talks to sell up to $3 billion in Twitter shares. Adding that people close to the matter have cited discussions as far back as December. Conversely, Musk has taken to Twitter to deny the report. Source: MacRumors Musk Seeking Sale of $3 billion in Twitter Shares Since his $44 billion acquisition of the platform months ago, it has not been an easy road for Elon Musk ’s new Twitter . The controversy surrounding mass layoffs, and the highly publicized development of the subscription service have all been a constant aspect of the platform since his ownership. A massive part of his early per...
Read more

Shiba Inu Poised To Destroy A Zero: Here's When

Image
The Shiba Inu network is setting its sights on a significant milestone in the world of crypto currencies: the eradication of a decimal point. In crypto lingo, “eliminating a zero” is the term used when a coin’s price increases tenfold, effectively shifting its decimal point to the right. While this journey may be lengthy, it is by no means unattainable, and the SHIB community is abuzz with anticipation. With Shiba Inu’s (SHIB) current price standing at $0.00000793, the community is optimistic about SHIB’s prospects for destroying another zero from its price point. To accomplish this feat and breach the $0.00001 level, SHIB would need to achieve a gain of roughly 25.5%. Notably, the last time SHIB traded above the $0.000001 mark was back in August, as per Binance’s data. Source Amidst this development, the SHIB market saw a recent decrease in trading volume. While some may find this worrisome, others interpret it as a positive signal. Reduced tra...
Read more

After BRICS Success, President Xi Jinping Likely To Skip G20 Summit

Image
After the successful BRICS summit in Johannesburg, Chinese President Xi Jinping is most likely to skip attending the G20 summit in New Delhi, India. Sources familiar with the matter said that Chinese Premier Li Qiang will represent that nation at the G20 summit in September. Two Indian officials, one diplomat in China, and an official of another G20 country told Reuters on condition of anonymity that Qiang is expected to lead China’s efforts on behalf of Jinping at the summit. Also Read: Second BRICS Expansion Soon: South African PM Makes Huge Announcement Jinping is most likely skipping the G20 summit comes on the heels of the border dispute between India and China. The recent controversy over border disputes engulfed after China drew a map showcasing Arunachal Pradesh a part of Chinese territory. For the uninitiated, Arunachal Pradesh is a State in the northeast part of India and borders China. The proximity to China has caused several border disputes for decades. Whil...
Read more