Canadians will have their token anchored to Fiat currency.
One of the main Canadian cryptocurrency exchange houses, Coinsquare, announced that it is working on the issuance of a token anchored to the official currency of Canada. The pre-launch was announced through a press release, this Thursday, March 4.
The information indicates that the new token, called eCAD, will maintain a 1: 1 ratio with the Canadian dollar. According to Coinsquare, the aim of the launch is to encourage the massive adoption of cryptocurrencies in Canada. The cryptobolsa CEO, Cole Diamond, said eCAD will provide a deposit of “transparent, affordable and safe value without the risk of instability of the traditional market of cryptocurrencies”.
Diamond is of the opinion that a token linked to fiat currency, such as eCAD, offers the best of two worlds, providing the monetary stability of the Canadian dollar and the benefits of cryptocurrencies. He said that each eCAD created will have the backing of a Canadian dollar (CAD) that will be kept in reserve.
The statement does not include information on the state of development, nor a possible date for the official launch of the eCAD cryptoactive. However, he points out that it is part of the optimization processes of Coinsquare’s financial services, including cross-border payments and remittances, peer-to-peer loans, as well as solutions for trade.
It should be noted that some tokens linked to fiat currency, currently present in the market, have been suspected of not having the monetary reserves corresponding to their currency. Hence the importance of independent audits for this type of project.
On the other hand, it is valid to clarify that, although they are popularly known as stable currencies (stablecoins), in practice, the anchored tokens are also affected by the fluctuations of the crypto market, although a lower rank than the rest of the cryptoactives.
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