A stablecoin pegged to the US dollar, but aimed at the Canadian market, has been officially launched by Blockchain Venture Capital, Inc.
CUSD Combines US Dollar Backing with Canadian Demand
CUSD is the newest fiat-based stablecoin backed by the greenback, and secured by a US-based banking institution. New coins are only issued corresponding to funds in a dedicated escrow account. At the official launch, 100 million CUSD was issued.
The CUSD stablecoin is different from other fiat-derived crypto coins on the market. For one, it runs on the BVC-chain, a public, decentralized blockchain that combines the features of Ripple and Ethereum networks. The asset will be available through the BVC wallet, and its chief aim is to facilitate cashless transactions, while still retaining transparency and connection to the legacy financial system.
CUSD will fuel the activity of the BVCPay app, which combines a payment hub, wallet, blockchain explorer, and trading platform.
BVCI has covered the requirements for a money management business, with no risk to abandon the project based on a loss of banking services. The CUSD and its predecessor, CADT, have already passed regulations by the local financial authority, FINTRAC.
Stablecoins Take Over in 2019
Stablecoins greatly appreciated in utility and usage in 2019. While regulators scrutinized the idea of “stablecoins” based on Facebook’s Libra proposal, smaller projects have managed to launch without a glitch. The possibility to own crypto assets with a predictable price has appealed to new traders. Stablecoins have been extremely useful in arbitrage and moving funds between exchanges, where the waiting time for moving fiat is a few days.
Stablecoins usually derive their value from the US dollar, but there are also assets pegged to other national currencies. The representation of CAD is relatively low, despite the fact that Canada is one of the most active markets for crypto adoption. The only other CAD-based stablecoin is TrueCAD, built by TrustToken.
There is also additional work required to create a CAD Stablecoin on the XRPL ledger, but so far, the asset has not launched officially.
R3 & Bank of Canada conducted tests for project Jasper (Cad-Coin).
Canada's large value transfer system handles payment values of ~Canada's annual GDP, weekly.
But this new project is BIGGER than a CAD stablecoin on the XRPL. You going to begin moving trillions, @bobrasX ? https://t.co/TxeINKcDMB pic.twitter.com/6rGGo5qqSQ
— Joe Smo (@JoeSmo05464358) October 12, 2019
So far, the previous CADT stablecoin by BVCI has not shown significant influence in the crypto trading ecosystem. The coin was launched this July, with similar promises to CUSD.
Stablecoins pegged to the US dollar have a collective supply of nearly 5 billion coins when counting the leading stablecoins. Only a few are globally represented, while some are specific to a handful of crypto exchanges.
What do you think about the new CUSD stablecoin? Share your thoughts in the comments section below!
Images via Bitcoinist Media Library, Twitter: @JoeSmo05464358