In line with a recent official ‘press-release‘ published, Canada’s leading cryptocurrency exchange ‘Coinsquare’, will be launching a new stablecoin named ‘eCAD’ backed by the Canadian Dollar.
The new stablecoin will supposedly be backed in the ratio of 1:1 with the Canadian dollars. Coinsquare added that the new coin is a reliable and stable store of worth that offers investors with an alternate to similar coins backed by the U.S. dollar.
Explaining further, the chief operating officer of Coinsquare named ‘Cole Diamond’, added:
“The launch of eCAD can form the primary transparent, affordable, and secure approach of transferring worth in Canada and on a far side, without the involved risks of instability within the traditional cryptocurrency market.”
However, the announcement failed to provide a timeline for when the stablecoin would be officially launched.
Stablecoin’ are ‘seen by some‘ as a link between the cryptocurrency sphere and traditional investors, as the backing of a currency, asset or algorithm can offer alot more stability than “un-pegged” cryptocurrencies.
Moreover, the crypto community has stressed the importance of audits related to the stablecoin projects, as earlier also, some ‘stablecoins‘ have been suspected of not possessing the acceptable backing reserves.
Earlier last year also, the stablecoin Tether [USDT] was ‘subpoenaed‘ by the United States government following suspicions that the project failed to have the required backup of the dollar currency at its claimed ratio of 1:1.
Even in March this year, Tether [USDT] ‘became‘ the topic of additional scrutiny when social media users ‘noticed‘ it had removed previous claims that the altcoin was totally backed by United States dollars.
However, the revised policy added:
“Every Tether [USDT] is always 100% backed by our reserves, that includes traditional currency and cash equivalents and, from time to time, could embody alternative assets and receivables from loans created by stablecoin Tether to 3rd parties, which can also embody affiliated entities…”