By James Glynn
SYDNEY–The Reserve Bank of New Zealand said Friday it is ramping up its monitoring of stablecoins and crypto assets in response to public concerns over their potential impact on the financial system and monetary sovereignty.
“A regulatory approach isn’t needed right now, but increased vigilance is,” said Ian Woolford, director of money and cash at the RBNZ.
“There are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will develop and where the optimal balance will lie,” he added.
Global policy harmonization around the issues is crucial to ensure effective regulation. As overseas regulatory regimes are implemented, best practice may become clearer, Woolford said.
Write to James Glynn at James.Glynn@wsj.com