New Zealand is preparing for the re-introduction of a cryptocurrency pegged to its national fiat currency, the New Zealand dollar (NZD). The digital currency is called the NZDT, (the New Zealand dollar Token) and is issued by the country’s leading digital asset exchange Cryptopia.
The NZDT was initially launched last year but was stopped following regulatory concerns. However, Cryptopia is planning to reintroduce the financial product. The news was received with enthusiasm from the country’s cryptocurrency community.
Ask Forgiveness, Not Permission
NZDT was launched in May of 2017, following the Blockchain New Zealand conference, which was held in Auckland. Among many of the issues discussed by stakeholders of the crypto community, one of the major points raised was the difficulty Kiwis faced with regard to purchasing digital currencies.
Following the conference, Cryptopia initiated a partnership with a local bank to offer a fiat currency-tethered token to its customers. The NZDT system was rapidly put together with the company taking an ‘ask forgiveness, not permission’ stance.
To get NZDT, Kiwis would deposit their currency into a bank account and would then receive an equivalent amount of the tethered digital currency. NZDT could be used to purchase bitcoin and altcoins. Additionally, Cryptopia’s customers could use NZDT to cash out their digital currency holdings. The process was almost instantaneous.
The stable coin provided Kiwis with an easy way to access the cryptocurrency market, especially as its value soared. Following the release of the NZDT, Cryptopia saw a major increase in daily transactions as well as its user base, with the service provider doubling its user base in less than a year.
Adam Lyness, Cryptopia’s business development manager, explained how the exploding popularity caused the supporting bank to get cold feet.