"The global regulatory landscape for crypto is anything but uniform. While some countries have embraced this new form of currency, others are more reserved. Here in New Zealand, we have taken a stance that does not presently require stringent regulation." Woolford says

The RBNZ differs from other international bodies and believes that it is unnecessary to impose comprehensive regulatory measures on cryptocurrency at this point of time. Instead, the institution is adopting an approach based on consistent monitoring and vigilance.

This hands-off approach contrasts with regulatory moves made in other parts of the world. For example, the United States has regulated cryptocurrency exchanges under the Bank Secrecy Act, which mandates financial institutions to assist U.S. government agencies to detect and prevent money laundering.

In the European Union, the Fifth Anti-Money Laundering Directive (5AMLD) was enforced, extending its regulatory scope to include cryptocurrencies and crypto service providers. This move was aimed at reducing anonymity associated with crypto transactions and to discourage illicit activities such as money laundering and terrorism financing.

While no current measures are being implemented in New Zealand, RBNZ like other institutions are aware of the regulatory measures globally, and actively monitor developments around stablecoins and other crypto assets.

To ensure the stability and integrity of New Zealand's financial system, RBNZ acknowledges the importance of staying current with the evolving financial landscape.

While their bank’s approach may seem indifferent compared to its global jurisdictions, it is clear that the Reserve Bank is not turning a blind eye to cryptocurrency. Rather, it is applying the wisdom of watchful waiting – being ready to act, but allowing innovation to evolve.

As cryptocurrency continues to make waves in the global economy, the position of central banks will be crucial in shaping its future. And in New Zealand's case, vigilance, rather than regulation, appears to be the order of the day.