The frenzy around Stablecoins doesn’t seem to be ending as of now every exchange or business just needs to have piece of it. While all leading crypto supportive countries have announced their plan for Stablecoins, New Zealand doesn’t want to stay far behind in this race as it plans to relaunch it New Zealand Dollar pegged New Zealand Dollar Token (NZDT)
NZDT don’t want to repeat its mistakes of 2017
In May 2017 Cryptopia, New Zealand’s largest cryptocurrency exchange launched the ‘NZed’ (Code NZDT), the first cryptocurrency token tethered to the New Zealand dollar. The move had come after several speakers at the blockchain conference, including Xero’s Grant Anderson, raised the need for Kiwis to have a crypto-based New Zealand dollar. This quick step driven by excitement led Cryptopia to commit an error. The launched stablecoin was unregulated and had applied for no licenses. Due to this, it was eventually delisted from Cryptopia – New Zealand’s most popular crypto exchange – and the project was put on hold.
However, things seem to be changing now for as Cryptopia has been working closely with the government to help educate the members and ensure that they are fine with the stablecoin before it’s launched. This will mean that the NZDT will have full support and backing of the government and it’s highly likely that the stablecoin accounts will be audited with the results being publicized.
This were very different then as the government of New Zealand was stuck in an unsure state over the crypto market as a whole, and this led to the NZDT being pulled from Cryptopia. In fact, the government was very close to passing a bill preventing any crypto activity from happening in the country, but it decided not to pass the bill at the last minute. From there, the government has worked closely with the Australian government and it’s slowly changing its stance towards cryptos to become more favorable of the digital assets.
Govt. backed stable coins rising in numbers
If this relaunch comes out to be good and government-backed, this stablecoin could achieve never heights of where it had left out in 2017 before being pulled out of the exchange. According to the numbers then When the NZDT was in full swing, its popularity saw over $1 million NZD being transferred into NZDT every day. All a user had to do was create an account, send their fiat into Cryptopia’s bank account and it instantly issued the user with NZDT. Its efficiency helped it grow to a become behemoth of a market within only four months from its initial launch.
While Cryptopia is still working on the relaunch it has one eye on the checklist of mistakes that Tether had committed. It would definitely want to avoid those in order to be successful. Tether was one of the most popular USD stablecoins on the market, but it ran into some trouble. Undisclosed banking information combined with reports of market manipulation have hurt Tether’s price. Cryptopia would definitely want to avoid that. Banking partners are vital in order for Cryptopia and the NZDT to prosper, and picking the wrong bank can doom the project from day one.
The NZDT will once again give citizens from New Zealand an easy entry into crypto markets, without the need for using a different fiat currency to get started. Hopefully, Cryptopia and the NZDT hit the ground running.
Will NZDT be able to hold background and ride the ladder of success again from where it had left? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.