Easy Crypto, a leading New Zealand cryptocurrency exchange, has announced the launch of NZDD, a stablecoin pegged to the New Zealand dollar (NZD). The debut was done in collaboration with Australian blockchain development firm Labrys and marks the introduction of a stable, digital representation of the NZD, paving the way for seamless and secure transactions within the country’s digital economy.
Labrys and Easy Crypto made the announcement on Nov. 22 noting that the NZDD will have a 1:1 backing with cash held in trust and will be subject to regulation by the New Zealand Financial Markets Authority.
The stablecoin will initially utilize the Ethereum network, with plans to broaden its presence to Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
Easy Crypto decided to introduce the stablecoin due to the perceived difficulty New Zealanders have in maximizing their profits with U.S. dollar-pegged tokens. Prior to this development, New Zealanders were primarily reliant on stablecoins pegged to the US dollar (USD) for digital transactions. This reliance on USD-denominated stablecoins presented challenges, as it introduced an additional layer of currency conversion for New Zealanders, leading to increased fees and potential losses due to fluctuations in exchange rates.
Janine Grainger, co-founder and CEO of Easy Crypto, mentioned that NZDD aims to bridge the gap with traditional finance and asserted that it would “move NZ forward as a nation, giving us a digital, programmable currency that can do everything the NZD can do.”
Alongside the stablecoin, Easy Crypto also launched a multicurrency self-custody wallet secured through multiparty computation cryptography. This means involving the user’s “trusted social circle” in managing parts of the key rather than relying on a seed phrase.
In an August report commissioned by the New Zealand Parliament, it was disclosed that the country had adopted an “agile” approach to cryptocurrency regulation. The report recommends that challenges are “addressed as they arise and that the government creates coherent and consistent guidance on the treatment of digital assets under current law.”
Previous endeavors to introduce a New Zealand dollar stablecoin include the 2021 debut of $NZDs by the Australian financial services provider Techemyny.
However, in 2022, the stablecoin’s connection was flagged for scrutiny following the hack of the DFX Finance protocol in November 2022, resulting in a significant portion of funds being marooned on the Polygon blockchain. Hopefully, the newly unveiled token will do better in terms of longevity.
A New Era for Digital Finance in New Zealand
The launch of NZDD marks a pivotal moment in the evolution of digital finance in New Zealand. By introducing a stablecoin pegged to the NZD, Easy Crypto has addressed a key need in the cryptocurrency market and paved the way for a more inclusive and innovative digital economy. As NZDD gains traction, it is poised to play a transformative role in shaping the future of financial transactions in New Zealand.
