BlockchainNZ Submission on Banking Competition 2024

BlockchainNZ Submission to the Finance and Expenditure Committee Inquiry into Banking Competition

BlockchainNZ is pleased to contribute to the Finance and Expenditure Committee’s inquiry into banking competition. As a community dedicated to advancing blockchain innovation in Aotearoa New Zealand, we represent a rapidly growing sector that is poised to transform financial services, technology, and the public sector.

Key Challenges for the Web3 Sector
BlockchainNZ highlights the significant challenges faced by Web3 companies, such as cryptocurrency exchanges and blockchain startups, in accessing essential banking services. This “debanking” trend limits innovation and economic potential, pushing talented businesses offshore and hindering New Zealand’s ability to remain competitive in the global digital economy.

A Call for Regulatory Clarity
The lack of clear regulations around digital assets and Web3 technologies has created uncertainty, both for banks and for emerging companies. This regulatory gap contributes to risk aversion, ultimately slowing progress. Other regions, like the EU, have introduced forward-thinking regulations, giving their markets a competitive edge. For New Zealand to lead in the fintech sector, we need a clear and supportive regulatory framework.

Recommendations for Change
BlockchainNZ urges the Committee to foster innovation by ensuring fair access to banking services and developing specific regulations for Web3 technologies. Encouraging more competition in the banking sector, alongside clear pathways for compliance, will provide businesses with the tools to thrive.

By addressing these issues, New Zealand can position itself as a global leader in the digital economy, driving innovation while maintaining financial stability. BlockchainNZ welcomes the opportunity to collaborate further with the Committee.