An Auckland firm's launching what is says is the first New Zealand dollar 'stablecoin' cryptocurrency.
Stablecoins are a type of cryptocurrency backed by a reserve asset, such as fiat currency or gold.
"The New Zealand dollar is currently the 10th most-traded currency in the world and commands immense trust globally. As a blockchain-based stablecoin, $NZDs combines the stability and value of the New Zealand Dollar with the intrinsic utility of cryptocurrency to allow arbitrage, remittance, and digital payments, while positioning the New Zealand dollar as a prominent participant in the global digital asset economy," a statement from Techemynt said.
Techemy was founded and is led by Fran Strajnar, described in his company's literature as a "a multi-disciplined entrepreneur and blockchain evangelist".
Strajnar said between the popularity of the New Zealand Dollar and the proliferation of cryptocurrency, "it was an ideal time to fill the gap in the market and lead the creation of a NZD-based stablecoin".
"After nearly a year of development, $NZDs is now first to fully execute and deliver on the promise of bringing a New Zealand Dollar stablecoin to the world. We’ve worked extensively with our top-tier partners to ensure $NZDs builds upon the best aspects of existing stablecoins while adhering to New Zealand’s legal requirements.”
He said $NZDs is backed 1:1 with physical New Zealand Dollars in a cash and cash-equivalent treasury. $NZDs will have "rigorous governance, management and transparency policies focusing on operations and compliance day-to-day".
Issued by Techemynt, $NZDs will be made directly available to customers who wish to acquire NZ$100,000 (or more) of $NZDs tokens.
$NZDs will also be made available on secondary markets starting with the NZ-based cryptocurrency exchange Dassetx.com and with plans for it to be later offered on other exchanges as well.
The company says anyone purchasing $NZDs directly from Techemynt will be required to complete customer due diligence checks in line with Techemynt’s Financial Service Provider obligations under the Anti-Money Laundering and Countering Financing of Terroism Act 2009 (AML/CFT) of New Zealand.
The company says users of $NZDs are likely to include forex and crypto traders, crypto funds, investors, and eventually merchants and everyday consumers.
"Techemy also envisages that $NZDs will be able to be transferred to DeFi platforms to earn yield. Currently DeFi platforms have the potential to provide participants with much higher yields compared to traditional bank accounts."