New Zealand Central Bank Governor Slams Stablecoins and Crypto in Favor of Fiat Currency

2 weeks ago 10
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New Zealand Central Bank Governor Slams Stablecoins and Crypto in Favor of Fiat Currency

New Zealand central bank governor Adrian Orr has issued a red alert on investors using stablecoins and other digital assets as an alternative to the fiat currency. During a recent hearing scheduled by New Zealand’s parliamentary Finance and Expenditure Committee, Orr highlighted that stablecoins are not a substitute for the fiat currency, which is backed by the government and controlled by the central bank.

Notably, Orr was responding to a question about whether the Reserve Bank of New Zealand (RBNZ) is concerned about the heightened use of decentralized digital assets like Bitcoin and stablecoins in place of fiat currencies. According to Orr, Bitcoin and stablecoins are neither a means of exchange nor a store of value, despite the high adoption from speculative investors.

He further expressed his concerns over the use of stablecoins as they are only as good as the balance sheet of the underlying issuer. As a result, Orr told the committee members that stablecoins are ‘the biggest misnomers and oxymorons’.

“The number one thing we can do is be as transparent and blunt as we can. They are speculative coins, not currency and not central bank cash,” Orr


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New Zealand Central Bank Governor Slams Stablecoins and Crypto in Favor of Fiat Currency