Cryptocurrency is starting to become more relevant and it’s important for New Zealand to catch up before getting left behind.
Cryptocurrencies are not viewed as a financial product and not regulated in New Zealand yet crypto is still growing worldwide. The Reserve Bank has hesitated at referring to cryptocurrency as a real currency due to it lacking many characteristics of currency including safety and reliability of exchange.
Another reason why cryptocurrencies have faced issue of adoption is because of environmental impact but recently, many of cryptocurrency’s ‘faults’ are being resolved.
Debate around the energy cryptocurrencies consume have typically been a way to dismiss it as a sustainable currency. For example, earlier in the year the price of Bitcoin dropped due to Tesla making a statement that it will not accept crypto as payments for its product due to the mining process of coins using too much fossil fuel electricity.
Although, the cryptocurrency ecosystem is now moving towards a greener future. Some eco-friendly coins are popping up. These alternative currencies are looking into renewable energy, and offsetting their carbon footprint.
Every energy consuming industry uses resources. It is up to the cryptocurrency community to address environmental concerns. It will take some time but there is already initiative for change.
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