Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Cryptocurrency Heading Towards A Greener Future

The cryptocurrency ecosystem is shifting towards a cleaner, greener future.

Most energy used to mine crypto already comes from renewable sources. Rather than harm the planet, crypto and blockchain can actually be a force for environmental good.

The debate around bitcoin and its carbon footprint has focused on the energy they consume, BlockchainNZ chair Bryan Ventura says.

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded for goods or services that the company provides.

Companies are also creating new financial products and services using blockchain technology, or decentralised finance. There are also new forms of virtual assets being created, using non-fungible tokens. Cryptocurrencies, decentralised finance and virtual assets work using a technology called blockchain.

“Cryptocurrency adoption has soared during the covid pandemic, as private investors, public companies and underbanked individuals realised the benefits of digital currencies.

“Regulators have struggled to keep up with this growth and may limit financial inclusion by applying rules to crypto markets that are not fit for purpose.

“By looking to past eras of innovation, regulators can work collaboratively to adapt rules and policies to support open competition and rapid innovation in the cryptocurrency sector.

“But bitcoin does consume resources. As with every other energy-consuming industry, it’s up to the crypto community to acknowledge and address these environmental concerns.

“Governments around the world are looking to increase the regulation of cryptocurrencies and virtual assets, which may extend to decentralised finance, non-fungible tokens and potentially other concepts using blockchain technology. There is a risk that Aotearoa New Zealand may follow suit.

“In doing so it may unintentionally hinder our virtual asset industry. Regulation and compliance are also relevant to New Zealand’s virtual asset business access to bank accounts.”

BlockchainNZ, which is part of the NZTech Alliance, can help government understand the basics, starting at how bitcoin/blockchain works through to smart contracts, security tokens and decentralised autonomous organisations.

Parliament’s finance and expenditure select committee is poring over 260 submissions into an inquiry into the nature, impact and risk of cryptocurrencies. Submissions closed earlier this month.

Cryptocurrencies are an emerging source of innovation that promises to democratise financial markets. Some cryptocurrencies have the potential to provide a better a store of wealth than official currencies.

The Reserve Bank says in its submission that products such as bitcoin claimed to be an alternative form of money but were little used as a form of payment.

However, BlockchainNZ told the select committee that the combined value of cryptocurrencies stood at almost $3 trillion in August and that most activities involving cryptocurrencies in New Zealand are captured under existing laws.

Dozens of individuals and companies involved in the crypto-currency industry made submissions in favour of cryptocurrencies.

BlockchainNZ’s submission encourages the government to work with the local New Zealand industry to shape standards for virtual asset services providers (VASPs), firms that manage cryptocurrencies for people, covering providing education about the risks and how cryptocurrencies should be managed by these trusted third parties.

“It is important to balance the mitigation of risks associated with cryptocurrencies and VASPs, against the importance of preserving a legal and regulatory environment which does not unduly stifle New Zealand innovation and prevent willingly compliant enterprises from operating.

“Achieving this balance would have positive flow on effects on the wider economy, such as growth in the New Zealand tax base and employment, consumer protection and an overall reduction in money laundering and terrorism financing risk.”

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>



Foodstuffs: New World & Four Square Trial NZ’s First Grocery Delivery Offer With Uber Eats

New World & Four Square have partnered with Uber Eats to unlock the first grocery offering available on the platform in Aotearoa. For New World and Four Square it’s yet another way to put New Zealanders first, particularly with those inevitable last-minute grocery needs... More>>

Digitl: Download 2.0 – Vodafone Wi-Fi Calling hits early milestone
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>



ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>


PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>



REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>