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Canadian financial institution plans to launch dollar-backed digital foreign money ‘within the coming months’

02/24/2021

Stablecorp CEO Jean Desgagne mentioned VersaBank’s digital foreign money was meant to offer an alternative choice to issues over volatility and safety in crypto markets.

In an announcement on Wednesday, VersaBank mentioned it plans to launch a digital foreign money known as VCAD, which can reportedly be backed by Canadian {dollars} deposited with the financial institution.

The Canadian financial institution claimed that VCAD would successfully be “the primary digital foreign money to symbolize a fiat foreign money” issued and backed by a North American financial institution. VersaBank mentioned it had partnered with Canada Stablecorp, a three way partnership between funding fund supervisor 3iQ and blockchain agency Mavennet, to launch the “stablecoin.”

The financial institution plans to make VCAD accessible to the general public “within the coming months” by issuing the digital foreign money to its “monetary middleman companions” in alternate for Canadian greenback deposits. These companions will then reportedly be capable to supply VCAD on to people and different companies.

Stablecorp CEO Jean Desgagne mentioned the digital foreign money was meant to handle “two main shortcomings of the normal cryptocurrency market,” specifically volatility and safety. The financial institution additionally plans to develop bank-issued digital currencies backed by the U.S. greenback and euro known as VUS and VEuro, respectively.

VersaBank is likely one of the few absolutely digital monetary establishments — there aren’t any brick-and-mortar financial institution branches by which to conduct transactions. As well as, its subsidiary rolled out a digital security deposit field for storing crypto.

Although not backed by a financial institution, 3iQ and Mavennet have already launched a regulated stablecoin pegged to the Canadian greenback. Earlier this month, the corporations launched an ERC-20 token known as QCAD, which already has greater than 170,000 tokens in circulation at a value of $0.7854, in accordance with Etherscan — roughly $133,000.

As well as, VCAD is just not the one Canadian dollar-pegged stablecoin on the Canadian market. Coinsquare at the moment backs eCAD and TrustToken’s TrueCAD (TCAD) token.