Coinsquare launches CAD backed stablecoin

World First: Coinsquare launches CAD backed stablecoin

Coinsquare is one of Canada's leading cryptocurrency exchanges. In an official statement, they officially announced the pre-launch of the eCAD. According to the official statement, the company is "thrilled" to give the wider public access to its plan for stabilizing cryptocurrency in Canada and beyond.

They believe the eCAD is special due to two factors. It is pegged to the Canadian dollar, thus removing the instability of traditional cryptocurrencies. However, due to it being a blockchain based cryptocurrency, it will offer the full benefits of blockchain technology. Most notably, it is a risk-free method of transacting and transferring value. They expect this value to go beyond just Canada, and they plan to target a global audience looking for the stability of the Canadian Dollar and all the myriad benefits given by using a cryptocurrency.

The company went on to elaborate on how the system will work in the real world. When any client of theirs buys an eCAD, one CAD will be held in reserve. This is important to them, as they want there to always be a stable 1 to 1 relationship between the eCAD and the Canadian dollar. This then allows Coinsquare to offer this service as a transparent and reliable asset to global investors. Global investors that increasingly want options to US Dollar backed stable coins.

The company went further to say that the launch of eCAD is the starting point of a massive surge in mainstream acceptance of cryptocurrency. It is also part of the general plan to launch Canada into the future, by being on the forefront of the crypto world with regards to new services. Coinsquare will not rest after releasing this new product.

They plan to use the boost from this new product to increase their market share of peer-to-peer lending, remittance, and cross-border payments. They plan to become a major player in forex exchanges and to offer meaningful merchant solutions. Though how much they will venture into a pure payment processor role is to be determined.

The company wants to remain focused on core values that it thinks will bring in the most users. These are mainly risk mitigation and transparency, but the company wants to push forward a culture of open-mindedness. They are sure that open-mindedness in terms of tech will help proper social change as well as social capital forward well into the next decade and beyond.

Where did this, to many, surprise announcement come from? Many think back to the rumors that Coinsquare had partnered with a major (top 5) Canadian bank back in September of 2018. Coinsquare did not return calls to any enquires and did not mention the name of the alleged partner bank.

Speculation was rife with regards to what the partnership with the bank would look like, and it is only now that we can see what they were planning all along. It is important to note that they are still the only exchange in Canada to have a partnership with a bank in the top 5, which explains how they were able to bring eCAD to market so quickly.

Author: Ali Raza for Crypto-Rating.com