Coinsquare Launches Canadian Dollar-Backed Stablecoin
Coinsquare will be launching a stablecoin backed by the Canadian dollar named eCAD.
The new coin will purportedly be backed at a 1:1 ratio with Canadian dollars. Coinsquare which is one of Canada’s top crypto exchanges states that the new coin will be a reliable and stable store of value that provides investors with an alternative to similar coins backed by the United States dollar. CEO of Coinsquare, Cole Diamond said:
“The launch of eCAD will create the first transparent, affordable, and secure way of transferring value in Canada and beyond, without the risk of instability in the traditional cryptocurrency market.”
The announcement did not provide a period when the coin will officially be released.
Stablecoins are seen by some as a bridge between the crypto sphere and traditional investors, as the backing of a currency, commodity or algorithm can provide more stability than “un-pegged” cryptocurrencies.
The crypto community has stressed the importance of audits for stablecoin projects, as some do not possess the appropriate backing reserves.
Last year, the stablecoin Tether (USDT) was subpoenaed by the U.S. government following suspicions that the project did not have the necessary dollars to back the currency at its claimed 1:1 ratio.