The New Zealand Dollar Token (NZDT) was New Zealand’s first stablecoin, with it giving crypto traders using New Zealand dollars a tokenized way to hedge risk. It was launched in May 2017 after the Blockchain New Zealand conference and quickly became popular. However, it took a Charlie Sheen-esque approach to life in the sense it sought to apologize rather than asking for permission – it 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, it looks like the tides are beginning to turn and Cryptopia is in the final stages of launching it once again.
Automated Fiat to Crypto Swaps
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.
Frosty Reception from the Government
Unfortunately, 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.
Making it Work This Time Around
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.
Learning from Tether’s Mistakes
Tether was one of the most popular USD stablecoins on the market, but it recently ran into some trouble. Undisclosed banking information combined with reports of market manipulation have hurt Tether’s price. It is wavering more than ever against its alleged USD peg, and crypto exchanges are quickly listing new USD stablecoins. It appears as if Cryptopia has learned from Tether’s mistakes and will ensure all reporting and accounts are made publicly available.
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.