Cryptocurrencies’ volatility has been an obstacle to adoption; however, the sector introduced the concept of stablecoins to address the issue of volatility. Soon after which several countries, as well as mainstream companies, started looking into the capabilities of stablecoins. Previously in July, Canadian firm Blockchain Venture Capital Inc. had launched CADT, a stablecoin pegged to the Canadian dollar.
The firm launched another stablecoin, CUSD whose value would be pegged to the US dollar. The previous stablecoin CADT was developed by Blockchain Venture Capital Inc. [BVCI]. This latest stablecoin was again launched by the same Canadian firm.
Since the value of CUSD is backed by the US dollar, it is expected to function as a global stablecoin. The firm intends to serve individuals as well as businesses through CUSD as they can use it for Canada and America cross-border trades.
The post further read,
“CUSD facilitates cashless transactions with the pledged value of USD deposited into an Escrow Accountwith a US-based financial institution. With superior blockchain technology, BVCI can reconcile CUSD and USD on a real-time basis.”
Furthermore, CUSD can be purchased via BvcPay which is BVCI’s digital asset wallet application. Users can make use of their USD to buy CUSD and then transfer the purchased stablecoins into the digital wallet. In order to acquire USD, users would have to transfer the stablecoins into the BVC-wallet.
Additionally, the Bank of Canada revealed that it is contemplating the issuance of their native digital currencies. However, the Financial Action Task Force [FATF], as well as Bank of International Settlements [BIS], labeled stablecoins as a global risk.