NZ central bank governor labels stablecoins ‘the biggest misnomers’

New Zealand's central bank governor, Adrian Orr, has criticized stablecoins, stating that they are not a substitute for fiat money and "are not stable."

Speaking before a February 12 parliamentary finance committee, Orr commented that stablecoins are "the biggest misnomers" and "oxymorons."

Orr was responding to a question on whether the Reserve Bank of New Zealand (RBNZ) was concerned about decentralized digital currencies and stablecoins, to which he responded that the bank was "critically concerned."

"Bitcoin is neither a means of exchange, nor a store of value, nor a unit of account, yet people try to use it as that," he said.

Fiat currencies such as the New Zealand dollar exist because they have the power of parliament behind them "and a credible institution such as an independent central bank to maintain low and stable inflation," he added.

"The number one thing we can do is be as transparent and blunt as we can. They are speculative coins, not currency, and not central bank cash" he added.

Orr said this is why there is a regulatory push on stablecoins and cited the United Kingdom as a jurisdiction that was "going very hard."