New Zealand central bank ramps up monitoring of crypto assets

New Zealand's central bank said on Friday it was ramping up its monitoring of stablecoins and crypto assets due to uncertainties about how the sector will develop and the potential risks they could pose for the financial system.

The decision follows public input to help confirm the issues stablecoins and the new forms of private money might raise for the financial system and monetary sovereignty, the Reserve Bank of New Zealand Director of Money and Cash Ian Woolford said.

"We agree that caution is needed, which also reinforces the need for enhanced data and monitoring to build understanding," Woolford said in a statement.