Power Finance, a New Zealand-based financial services company that has previously worked with giant PwC, has just announced it plans to roll out a digital version of the New Zealand dollar, Cointelegraph reports.
The currency, which will be a stablecoin based on distributed ledger technology, will be launched in early 2021.
However, it should be noted the company does not have the support of the country's government, so the "Power Dollar" will be more similar to a stablecoin like Tether than an official digital version of the national currency.
The currency will be backed by New Zealand dollars in a 1:1 ratio.
The project is led by former PwC partner Dave Corbett and supported by British investment firm Centrality Ventures, among others.
The use of blockchain tech will enable the registration of the identity of all currency owners as well as transactions, which will help prevent money laundering and fraud.
New Zealand has previously shown a positive stance towards blockchain and cryptos. Thus, in February the country's tax authority proposed to free cryptos from some taxes in order to promote their growth.
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