New Zealand-based financial services company Power Finance plans to launch what it’s calling a “world-first” digital version of the New Zealand dollar in 2021.
The ‘Power Dollar’ is not government backed, but rather more similar to a stablecoin like Tether than a true digital dollar. It is being set up privately and will be backed one-for-one by New Zealand dollars held by Inland Revenue (IR) through its tax pooling system.
The company is led by former PwC banking and capital markets partner Dave Corbett and backed by British investment firm Centrality Ventures, among others.
By using DLT in conjunction with smart identity technology, all currency holders will have their identities verified and transactions recorded, helping to prevent money laundering and fraud.
After launching the currency, the company will work to secure a banking license from the RBNZ. If successful, it will start signing up “partners” to launch banking-style services that function outside of the traditional banking system.
New Zealand is one of the more cryptocurrency-friendly countries. Earlier this year, it became one of the first nations to legalize Bitcoin as a form of income.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.