New Zealand-based financial services company Power Finance plans to launch what it’s calling a “world-first” digital version of the New Zealand dollar. Set to launch early next year, the digital currency will employ Distributed Ledger Technology.
The ‘Power Dollar’ is not government backed however and is more akin to a stablecoin like Tether than a true digital dollar. It is being set up privately and will be backed one-for-one by New Zealand dollars held by Inland Revenue (IR) through its tax pooling system.
The company is led by former PwC banking and capital markets partner Dave Corbett and is backed by British investment firm Centrality Ventures, among others.
By using DLT in conjunction with smart identity technology, all currency holders will have their identities verified and transactions recorded, helping to prevent money laundering and fraud. Corbett said that the new currency has been developed to function within current regulations, and added:
“I see the Reserve Bank every couple