New Zealand's Central Banker dismisses stablecoins as unstable and misleadingly marketed.
Adrian Orr, the governor of the Reserve Bank of New Zealand (RBNZ), issued a stern warning about cryptocurrencies such as stablecoins in testimony before a parliamentary committee on Monday.
Speaking to lawmakers in the capital city, Orr stated that stablecoins are "the biggest misnomers" and "oxymorons."
The central banker raised concerns that independent digital currencies could undermine the global financial system, stating that he and other central bankers worldwide are "critically concerned."
"Stablecoins are not stable. They're only as good as the balance sheet of the person offering that stablecoin," Orr remarked.
The governor contended that fiat currencies like the New Zealand dollar have the backing of parliament and institutions such as independent central banks focused on maintaining low, stable inflation.
Orr also criticized Bitcoin, saying it does not qualify as a means of exchange, a store of value, or a unit of account.
Orr's testimony comes as New Zealand explores options for a CBDC and considers potential regulations for the cryptocurrency industry.
