The future of money is digital – but NZ needs a careful framework to prevent the pitfalls of cryptocurrency

New Zealand’s central bank is preparing for a future that includes the mainstream use of cryptocurrency.

At the end of last year, the Reserve Bank of New Zealand (RBNZ) published an issues paper, Private Innovation: Te Auahatanga, on digital currencies. The paper sparked a wide-ranging discussion on the development of the cryptoasset market and how to respond to the challenges it presents.

The RBNZ received 50 submissions on its paper, with consultation ending in April. A summary of the submissions was recently published.

We took a look at the key concerns held by those who participated in the consultation and what these concerns could mean for the uptake of cryptocurrencies in New Zealand.

Ross Meurant: CRYPTO - A weapon of War?

According to a reliable source, on 1 June 2023 China will open a bank via Hong Kong for crypto trade.

Eighteen months ago, China banned crypto. (1)

Why the change in policy, one might ask?

With a predicted 20 trillion US dollars set to flow from mainstream banking into China’s crypto, one might conclude that this is but another weapon of the cold war between USA and China.

Mike Hosking: What's wrong with living in the real world?

As I understand the metaverse it will eventually be a place where you live that’s so real you may not know where you are, here or the metaverse.

At the moment, as I understand, the metaverse it's just a bunch of avatars, like avatars on games. In fact, the metaverse as I understand it right now just looks like a cheap game.

Some are starting to take it seriously. A Minister from a Middle Eastern government the other day called for the United Nations to be involved in the metaverse to oversee crime. It's a fair question. If crime is committed in the metaverse, which it will be, under whose jurisdiction is it policed? Who is charged? And where and what are the penalties?

Money is already being used in the metaverse, so does a financial crime get caught up by a police force somewhere?