New Zealand central bank governor: Stablecoins and other cryptocurrencies cannot replace fiat currency.

According to a report by Bloomberg on February 12, Adrian Orr, the Governor of the Reserve Bank of New Zealand, issued a warning about stablecoins and other cryptocurrencies, stating that they cannot replace fiat currency. During a parliamentary committee in Wellington on Monday, Orr stated that stablecoins are the "biggest misnomer" and "self-contradictory." He said, "Stablecoins are not stable. They rely solely on the balance sheet of the issuer providing that stablecoin." Orr added that fiat currencies like the New Zealand dollar exist because they have the support of parliament "and a trusted institution, such as an independent central bank, to maintain low and stable inflation rates."