Financial services firm from New Zealand – Power Finance – is reportedly going to release the alleged “world-first” digital version of the New Zealand dollar.
Specifically, the firm – with the former PwC banking and capital markets partner Dave Corbett leading and receiving support from British investment company Centrality Ventures among others – will release the digital currency employing DLT.
The “Power Dollar” is reportedly not receiving support from the authorities, bearing similarities to stablecoins, nominally Tether, rather than a true dollar.
The private set up process is reportedly being finalized, and will be backed at a 1:1 ratio with the New Zealand dollar, held by Inland Revenue via its tax pooling system.
Via the use of DLT and smart identity tech, every currency holder can reportedly be able to record their transactions data and run verification on their identities, reducing the risk of money laundering and fraud.
“I see the Reserve Bank every couple of weeks. It’s fair to say they’ve been supportive of what we are doing, but we’ve been stretching their minds about what the future of banking looks like.” Corbett reportedly disclosed the new currency was built in compliance with existing regulations.
Following the release of the currency, the firm will look to obtain a banking license from the RBNZ, and if succeeded, would carry on to team up with “partners” to roll out banking-style services, operating out of the scope of traditional banking systems.