Share this article
New Zealand Central Bank 'Not Threatened' by Bitcoin's Rise
The deputy governor of New Zealand's central bank has spoken positively of digital currencies like bitcoin.
Updated Sep 11, 2021, 11:19 a.m. Published Nov 11, 2014, 10:23 a.m.
The deputy governor of New Zealand's Reserve Bank (RBNZ) has said the institution is "not threatened" by the rise of bitcoin and digital currencies.
According to a report in stuff.co.nz, deputy governor Grant Spencer made the comments this morning at Payments NZ, a two-day international payments industry conference in Auckland.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Spencer's comments are in contrast to those of other central bank representatives over the course of this year, most of which have concerned warnings of bitcoin's investment risk and/or lack of legal tender status.
"I do not doubt that future digital currencies will become more realistic substitutes for cash," he said, also mentioning that, so far, bitcoin seems to "behave more like a commodity than a currency".
Of greater concern to the deputy governor were new players' involvement and security in the electronic payments industry in general, whether cryptocurrency-related or not.
The past 30 years have seen payments move from being primarily cash and cheques to more contactless, online and mobile phone-based systems.
Increased participation and new technologies brought with them increased operational risks, Spencer added, which could be disruptive to the economy. The general payments industry would have to manage these risks while still nurturing innovation and efficiency.
'Non-instrusive' regulation
The RBNZ preferred a "non-intrusive" and "low-key" regulatory approach to digital currencies, Spencer said, as opposed to some foreign central banks which had strengthened their regimes lately.
The central banks of both New Zealand and neighboring Australia did issue mild cautions about bitcoin in December last year, but at the same time described the technology as interesting.
Then in July this year, RBNZ deputy governor and head of operations Geoff Bascand described digital currencies as a "challenge to the form and provenance" of money that could supplant cash, despite some problems with price volatility.
New Zealand is often noted for having one of the world's most liberal economies, usually placing in the top five of the world Index of Economic Freedom along with Hong Kong, Singapore, Australia and Switzerland.
Notably, from 29th–30th November, the country will host its first bitcoin conference, Bitcoin South, in the resort town of Queenstown.
New Zealand image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
Top Stories
