Canadian Dollar Stablecoin Arrives on Algorand
Thanks to a partnership between Stablecorp and Algorand, the QCAD will soon be available via the Algorand blockchain. Stablecorp describes the QCAD as the “first Canadian dollar stablecoin designed for the mass market.”
Stablecorp is a Canadian company formed by the nation’s largest crypto asset manager, 3iQ, and blockchain development firm Mavenet Systems. It first launched the QCAD in Feb. 2020 on the Ethereum blockchain.
However, a recent press release shared with BeInCrypto explains that the new Algorand implementation will allow for greater use cases.
Sean Lee, the CEO of the Algorand Foundation, commented on the QCAD implementation:
“The global scale and speed of the Algorand protocol will enable the high transaction volumes that will facilitate new and innovative consumer innovation using QCAD.”
Algorand is already host to two other stablecoin projects. However, the QCAD will be the first non-US dollar-backed stablecoin on the network.
$Algo now has 3 Stablecoins available on their mainnet: $USDC $USDT and the Canadian $QCAD (added today)—
In Q1, 2020, @monerium will add the eEuro, the only regulated eMoney equivalent of the Euro
In talks with 16 CBDC projects.
Overall, a fast growing ecosystem. pic.twitter.com/qahytOeiWj
Daren (@Bmorecmore) November 30, 2020
The recent release claims that the new implementation will enable “instant confirmation, micropayments, and automatic wallet support” for the QCAD. Additionally, as the first non-USD stablecoin on Algorand, the QCAD will allow for the first synthetic Forex trading pairs on the network.
Algorand is shaping up to be a popular network for the issuance of stablecoins. Earlier this year, the Marshall Islands announced the Marshallese sovereign (SOV) as one of the world’s first national digital currencies. The nation teamed up with Algorand to develop the currency.
Private Stablecoin Issuance Threatening Nation-States
The surging market caps of stablecoins throughout 2020 have shown a growing demand for non-volatile digital currencies. However, up until now, coins backed by the largest fiat currencies have largely been the work of private companies.
As BeInCrypto reported last month, issuers of fiat currencies, such as the European Central Bank, are increasingly concerned about the growth of privately-issued stablecoins. ECB President, Christine Lagarde, stated that stablecoins issued by ‘big techs’ represent a particular threat.
Last week, the US Congress introduced a bill to regulate stablecoins. If enacted, the STABLE Act would force stablecoin issuers to apply for a bank charter. However, many in the cryptocurrency industry object to the proposal.
Efforts like Facebook’s Libra, recently rebranded as Diem, have attracted particular scrutiny. Such competition from the private sector is spurring central banks to launch their own digital currencies.