Adrian Orr called all stablecoins & cryptocurrencies risky and said that such digital assets can’t replace fiat currency, and can’t be used as legal tender.
New Zealand is a hub for the crypto & blockchain sector. Because of the country’s tech-friendly rules & laws, crypto-related financial activities are surging rapidly in the country. In short, crypto trading is fully legal under the jurisdiction of New Zealand. Many big companies in this country are involved in crypto & blockchain-related financial & business activities.
On 12 Feb 2023, Adrian Orr, the governor of the Central Bank of New Zealand, passed harsh comments against cryptocurrencies & stablecoins.
Adrian said that stablecoins are the biggest misnomers because these are not stable, instead the value of stablecoin tokens are characterized by the assets and liabilities of their issuer.
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The Central Bank governor responded to a question about the potential threat to the sovereign fiat currency because of the increasing adoption of stablecoins & cryptocurrencies.
According to Adrian, digital assets e.g. Bitcoin & Ethereum can’t be used to exchange money or legal tender and also there is no store value.
Furthermore, he explained that stablecoin value can be estimated via the actual balance sheet of the stablecoin issuer. In short, he said that stablecoin is different from sovereign fiat currency & can’t be used as a currency.
In-depth, he explained that the country’s sovereign fiat currency is very transparent & the central bank tries to be as transparent as they can but on the other hand crypto assets are highly speculative & can’t be used as a cash form of money.
This latest negative statement against cryptocurrencies by the Bank of New Zealand Governor doesn’t mean that they are going to take any strict action against cryptocurrencies.
The bank governor only tried to provide clarity between digital assets & sovereign fiat currency, so that people can understand the value of fiat currency issued by the central bank and also can understand the risks associated with the crypto investment.
Read also: Shiba Inu token burn rate pumps 1,800% within 24 hours, is a big pump coming?
New Zealand Central Bank governor slams Bitcoin & Crypto and called these “misnomers”
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