According to a press release, Techemynt is launching the country’s first legal stablecoin. $NZDs is backed 1:1 by the currency of New Zealand and is issued on Ethereum’s blockchain by Blockchain Labs.
According to a department of the Ministry of Business, Innovation, and Employment of New Zealand, Techemynt is a company registered as a Financial Service Provider. The firm is linked to Techemy Capital, a crypto hedge fund.
“$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,” the company said.
$NZDs’ code uses a structure generated by the Circle-founded Centre group and Coinbase. According to the Techemynt website, reserves of the New Zealand dollar backing the stablecoin will be confirmed by a “leading accounting firm” providing reports periodically. This will guarantee the needed transparency.
“The NZ dollar reserves for NZDs will be confirmed by a leading accounting firm on a quarterly basis. We publish these reports here so that you can be confident that NZDs are always 100% redeemable for New Zealand dollars. NZDs can be viewed on the Ethereum blockchain. These reports will be posted on our Transparency Page,” is stated on the firm’s website.
This isn’t the first time New Zealand has tried to issue a stablecoin backed by the country’s dollar. In 2017, an exchange platform called Cryptopia launched NZDT, the first unregulated stablecoin.
Due to regulatory concerns, the exchange’s bank stepped back, and Cryptopia was obligated to cancel the cryptocurrency. Another unsuccessful attempt was made in 2019, but the hopes are high for this new stablecoin.