Coinsquare Crypto Exchange Unveils Canadian Dollar-Backed Stablecoin
Canada’s popular cryptocurrency exchange Coinsquare is launching a stablecoin, named eCAD, which is pegged to the Canadian dollar on a 1:1 ratio.
Coinsquare claims that the stable coin will be a dependable and solid store of value that offers investors with a substitute to comparable coins backed by the US dollar.
Regarding eCAD, Cole Diamond, CEO of Coinsquare 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 news release, however, did not give a specific schedule for the launch of the stable coin, which is generally seen as a bridge linking the crypto sector and conventional investors. The backing in the form of commodity, algorithm or a fiat currency can offer better stability in comparison to “un-pegged” cryptos.
Crypto enthusiasts and investors always look for reliable audits on stablecoin ventures as there have been instances of allegations on promoters not holding enough reserves to back the stable coin.
In 2018, Tether (USDT), a stablecoin pegged to the US dollar, was subpoenaed by the US government after allegations on social media platforms that the venture did not have sufficient amount of dollars to back the crypto on 1:1 ratio.
Last month, Tether was further scrutinized after social media users observed that it had axed earlier assertions that the altcoin was totally backed by the US dollars.
The amended policy says:
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities…”