New Zealand's regulator has provided clarity on what constitutes a stablecoin, a type of digital token linked to traditional currencies like the US dollar. Over recent years, stablecoins have become increasingly prominent in New Zealand's crypto landscape.
Murat Ungor, Senior Lecturer in Economics at the University of Otago, notes that stablecoins are not just for financial institutions but can be used by anyone with an internet connection. This has led to concerns about regulation and potential risks associated with these digital tokens.