According to a press release today, a branch of the New Zealand government has effectively endorsed a Cryptocurrency firm to the tune of $330,000. The logical question that comes to mind first is: why? Why, with such an uncertain regulatory status is Crypto good enough for New Zealand’s government and not others?
The easy answer is: the New Zealand government did not directly back the project in question and yet it did, both at the same time. How is that possible?
It all starts with a Cryptocurrency exchange out of Auckland called Vimba, which bills itself as a “Cryptocurrency savings and trading platform,” according to the New Zealand Herald. This designation of being a savings platform relates to what truly drives Vimba, which is helping its customers save a certain amount of Bitcoin over the long term and realize the benefits of doing so. At the same time, they are also an exchange because they allow and facilitate the trading of Bitcoins, seemingly at any time. In speaking about why his team believes in Bitcoin, Vimba’s CEO Sam Blackmore cites it being like a more secure version of gold that is fully online and easy to access. In short, he sees Bitcoin as the future of money and the path to widespread adoption of Cryptocurrencies.
As of now, it truly does appear that the branch of the New Zealand government that is supposed to foster innovation, called Callaghan Innovation, believes the same thing. With their launch coming in the near future in the United Kingdom and the European Union, we will see if Vimba is able to succeed where others have fallen short, so far. Perhaps, the answer to doing so starts with having a vision that the average global citizen can identify with. Perhaps that vision starts with why Bitcoin has value for everyone.
Whatever the case, one thing seems to be sure. Governments should be careful to foster and not stifle the innovation that continues to spring forth from the Blockchain at a breakneck pace.
By: BGN Editorial Staff