According to a press release dated April 4, Canada’s leading cryptocurrency exchange – Coinsquare will be launching a stablecoin called eCAD which is backed by Canadian dollar.
Reports suggest that this new coin will be backed at a 1:1 ratio with Canadian dollars. The platform further states that the new coin will be a stable and reliable store of value which will primarily provide with alternatives to investors with relatively similar coins backed by U.S. dollar.
The CEO – 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.” However, there was no timeline associated with the announcement as to when the coin will be released officially.
Many people think that a stablecoin is a bridge connecting traditional investors and the crypto sphere, mainly because of the backing of currency, commodity or algorithm can give better stability as compared to “un-pegged” cryptocurrencies. The cryptoverse emphasizes on the need for audits of stablecoin projects since a few stablecoins have been suspected of not processing the right backing reserves.
In 2018, USDT (stablecoin Tether) was summoned by the government of the United States following suspicions that the project did not have the required dollars in order to support the currency as to what the project claimed (1:1 ratio.) In the following year, Tether became the topic of extensive analysis after various social media users noticed that the previous claims – altcoin was fully backed by U.S. dollars – made by Tether had been removed.
According to the new policy, “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…”