Through a collaboration with Australian blockchain development company Labrys and New Zealand cryptocurrency exchange Easy Crypto, a New Zealand dollar-pegged stablecoin has gone live.

The NZDD will be governed by the New Zealand Financial Markets Authority and backed 1:1 with cash in trust, according to a statement released by Labrys and Easy Crypto on November 22.

Although it is currently only available on Ethereum, it will soon be available on Polygon, the BNB Smart Chain, Arbitrum, Optimism, and Coinbase's Base.

Easy Crypto launched the stablecoin because it said that using tokens pegged to the US dollar made it more difficult for New Zealanders to maximize their profits.

The CEO and co-founder of Easy Crypto, Janine Grainger, asserted that the NZDD would "move NZ forward as a nation, giving us a digital, programmable currency that can do everything the NZD can do" and that it would close the gap with traditional finance.

By enlisting the user's "trusted social circle" with portions of the key rather than a seed phrase, Easy Crypto introduced a multicurrency self-custody wallet secured by multiparty computation cryptography in addition to the stablecoin.

The New Zealand parliament commissioned a report in August that stated that the nation has adopted a "agile" approach to cryptocurrency regulation.

It suggests that the government develop "coherent and consistent guidance on the treatment of digital assets under current law" and that issues be "addressed as they arise."

Sources:

https://cointelegraph.com/news/new-zealand-dollar-stablecoin-goes-live

https://twitter.com/UngaroDarcy/status/1726994183154483380