Parliament’s Finance and Expenditure Committee has opened an inquiry into the current and future nature, impact, and risks of cryptocurrencies.

Dr Duncan Webb, chairperson of the committee said: “This inquiry will give us a good opportunity to further our understanding of this increasingly important topic.”

The terms of reference for the inquiry are:

· To inquire into, and establish the nature and benefits of cryptocurrencies:

o To establish how crypto-currencies are created and traded.

o To understand the environmental impact of ‘mining’ crypto-currencies.

o To identify risks to users and traders of crypto-currencies.

· To identify the risks crypto-currencies pose to the monetary system and financial stability, including tax implications, in New Zealand.

· To establish how crypto-currencies are used by criminal organisations.

· To establish whether means exist to regulate crypto-currencies, either by sovereign states, central banks, or multi-lateral co-operation.

Dr Webb said: “We look forward to engaging with some of New Zealand’s experts on this subject.”

The committee will make further announcements regarding the dates and nature of this inquiry in due course.

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