Techemynt has launched $ NZDs regulated stablecoin on the Ethereum blockchain. The stable cryptocurrency will be backed by the New Zealand dollar at a 1: 1 ratio.
Techemynt is registered as a financial services operator with the Department of Business, Innovation and Employment of New Zealand. Stablecoin $ NZDs are deployed on the Ethereum blockchain with the participation of Blockchain Labs. The stablecoin code uses a structure developed by cryptocurrency exchange Coinbase and the Center consortium.
Fran Strajnar, co-founder of cryptocurrency hedge fund Techemy Capital, said the firm had interacted with law firm MinterEllisonRuddWatts for more than nine months prior to the token’s launch. This was necessary in order for the $ NZDs to comply with New Zealand law. The stablecoin issuer will report quarterly on the reserves backing the stablecoin. The reports will be confirmed by an accounting firm, but its name has not been disclosed.
Techemynt Managing Director Adam Dodds added that $ NZDs compliance will ensure user confidence. Going forward, Techemynt will work with New Zealand regulators to agree on further regulatory nuances. Given that $ NZDs is backed by fiat currency, it can be used for money transfers and digital payments, Dodds said. Therefore, the New Zealand dollar can become one of the key elements of the international digital asset market.
Earlier in New Zealand, attempts have already been made to create a stablecoin pegged to the country’s national currency. In May 2017, the bankrupt cryptocurrency exchange Cryptopia issued the unregulated stablecoin NZDT. However, in 2018, the bank serving the exchange closed its trading accounts for operations with NZDT. The exchange planned to resume work with stablecoin in the first quarter of 2019, but this never happened due to the hack that Cryptopia underwent. The exchange was unable to recover from the hacker attack and was forced to close.
Recall that last fall, the financial company Power Finance announced its intention to launch a digital version of the New Zealand Power Dollar. The goal of the initiative is to prevent money laundering and fraud.
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