Fintech company, Techemynt, a New Zealand-based financial service provider (FSP), is <a href="https://www.globenewswire.com/news-release/2021/03/10/2190628/0/en/Techemynt-Launches-First-New-Zealand-Dollar-Stablecoin-NZDs.html" target="_blank" rel="nofollow noopener">launching</a> $NZDs stablecoins backed one-for-one with New Zealand dollars. The stablecoin is positioned on the Ethereum blockchain by Blockchain Labs using the FiatToken framework developed by the decentralized payment network firm Centre. 
<h2>The Volatility of Cryptocurrencies</h2>
The <a href="https://www.cryptoknowmics.com/news/what-is-bitcoin-volatility/">volatility of Bitcoin</a> is no secret to anyone. From a commercial perspective, digital assets like Bitcoin and Ethereum do not have addictive use cases in the payment space, but the value of these digital coins fluctuates widely. In the past six weeks, the price of Bitcoin has been remarkably volatile falling as low as 36k in mid-February to <a href="https://www.cryptoknowmics.com/news/bitcoin-btc-hits-60k-continues-to-hit-aths-at-weekends/">soaring 61k</a> in mid-March. The volatility of these crypto currencies is unrealistic. And hence are unsuitable for transactional commerce. 

Stablecoins are one of the solutions to these problems. <a href="https://www.cryptoknowmics.com/news/top-three-3-stablecoins-by-market-capitalization-in-2021/">Stablecoins</a> are a type of cryptocurrency that is backed by reserve assets. Blockchain-based stablecoin combines the stability and value of the New Zealand dollar with the inbred utility of cryptocurrencies. This allows remittance, arbitrage, and payments in the global digital asset economy. The first stablecoin Tether (USDT) launched in 2014 is pegged 1:1 by US dollars. 

The widespread acceptance of Tether was swift. The application is the third-largest cryptocurrency by market capitalization. The launch of Tether brings many other stablecoins into significance. Stablecoins pegged with fiat currencies have secured a special position in the marketplace. There are stablecoins available for CNY, EUR, GBP, VND, BRZ, KRW, SGD, CHF, IDR, etc. 
<h2>New Zealand Dollar Stablecoin - $NZDs</h2>
Techemynt's executive director Fran Strajnar accepting the need for stablecoin, said:

“$NZDs was in development for over a year and potential users will include forex and crypto traders, crypto funds, investors, and eventually merchants and everyday consumers. $NZDs will be available to buyers who wish to acquire NZ$100,000 (or more) from Techemynt directly - and smaller orders can be filled on secondary markets like the Dasset exchange (also a New Zealand registered FSP).”

Moreover, anyone obtaining $NZDs directly from <a href="https://www.techemynt.com/" target="_blank" rel="nofollow noopener">Techemynt</a> has to complete Customer Due Diligence checks in line with Techemynt’s FSP obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT) of New Zealand.

Strajnar believes as onramps and offramps evolve it is envisaged that $NZDs will be able to be transferred to DeFi platforms. Currently, DeFi platforms have the required potential to issue participants with much higher yields compared to traditional bank accounts.

Fintech Company Techemynt Launches NZ Dollar Stablecoin $NZDs

Techemynt, a New Zealand-based financial service provider, launches $NZDs, the NZ dollar stablecoin, to solve the limitations of the native dollar.

A student from a technical background, Deepshikha found Bitcoin in 2020 and has been an evangelist ever since. A B.Tech turned into a full-time crypto-writer, she tries to bridge the gap that currently exists between the crypto world and people from non-technical backgrounds, through her simplistic yet effective form of writing. She finds that her writing for cryptocurrencies can redefine the way the audience interacts with the crypto space.

Fintech Company Techemynt Launches NZ Dollar Stablecoin $NZDs

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