Cryptocurrency whiz to meet with Reserve Bank
The co-founder of one of the world’s biggest blockchain businesses will talk to New Zealand regulators about opening up the market here.
Fred Ehrsam, co-founder of Coinbase, which is estimated to be worth more than US$500 million ($698m), will visit New Zealand this month after being selected for the first intake of the Edmund Hillary Fellowship.
The fellowship will bring 24 international entrepreneurs to mix with top local business people.
Ehrsam, a former Goldman Sachs trader, helped found Coinbase in 2013. It is now seen as one of the most influential cryptocurrency companies.
Coinbase is a digital wallet for cryptocurrencies such as Bitcoin. Blockchain technology allows people to make payments without going through the banks.
“The main goal was to make digital currencies easy to use for the everyday person,” he said.
But the 28-year-old said he found one of the biggest elements was getting the regulators on board.
He stepped down from the day-to- day running of his business in January to take a break and has now set his sights on encouraging regulators to be more open to blockchain technology and helping other entrepreneurs.
He has already discussed blockchain with regulators in the US, Japan and Britain and has a meeting booked with the Reserve Bank.
“Digital currency is this new weird thing that doesn’t fit into a particular bucket.”
He expected his meetings in New Zealand would be a learning process on both sides.
“I want to create a regulatory framework for digital currencies that is in line with societal values. At the same time that allows entrepreneurs a solid base.”
That would mean entrepreneurs were able to take a calculated risk, he said.
Ehrsam already has connections to New Zealanders involved in this space and said one of the first directors of engineering for Coinbase was a Kiwi.
He also hoped to talk to others looking at doing start-ups in the digital currency space.
“One of the other goals since I have stepped out of my day-to-day role — I have been helping start-ups.”
Coinbase would like to operate in New Zealand.
“But the rules around it aren’t particularly clear at the moment.”
Ehrsam said blockchain technology would change what banks did but would not be the end of them.
“I think it will morph, not completely go away,” he said.
“At its core, a bank really is a riskmanagement company. I can’t see that going away.”