Canada is Making Its First Steps Towards Embracing Cryptocurrency
Cryptocurrencies and financial technologies, in general, have become a huge priority for all developed countries. The use and the potential of cryptocurrencies and blockchain technology have already opened many doors for the variety of industries and the benefits of using this innovative payment method are evident to everyone. At this moment crypto payments are widely used in the entertainment industry to make deposits playing online casinos for example, or paying for mobile apps. But while the financial experts are just getting familiar with these topics some problematic aspects of the industry have already started to turn some countries against the cryptocurrency or at least made them slow down the process of embracing this new technology.
It’s safe to say that while Canada is one of the most well-developed countries and has a strong economy. The officials haven’t been too excited to start working with cryptocurrencies and the demand from the population hasn’t been that high either. While some countries, like China, want to use cryptocurrencies to prove their superiority and tech-capabilities, Canada seemed to have taken a different approach, prioritizing other matters and largely ignoring the potential of cryptocurrencies in the country. But it looks like the passive attitude is finally starting to change in Canada as the country just announced its first-ever Stablecoin that will be attached to the Canadian dollar and backed up by the National Bank.
How the first Canadian crypto came to be
The Canadian Stablecoin will be called QCAD and was created by the mutual efforts of 3iQ, the company that primarily does asset management and Macennet System, a blockchain developer.
The reason why starting with Stablecoin was a good idea is because Canada is not the place where everyone loves the idea of cryptocurrencies in general. Because of some cons that come with cryptos like high volatility and security issues, issuing a Stablecoin that has less volatility and working together with the national bank, which obviously has the trust of the Canadian citizens, it is a good way to start and make sure that people feel safe and secure using this currency as they get to know more about the crypto-word in general.
QCAD is a cryptocurrency that was built on the base of the Ethereum blockchain, one of the top cryptocurrencies right now that is also making a name for itself for its more or less sustainable practices, which is something we haven’t yet seen in the crypto world. The Stablecoin is already available on Bitvo, a financial transaction platform that a lot of Canadians use for their b2b or p2p transactions. According to the National Bank, QCAD can be used in value chains as well, covering industries like gas, oil, and food, while also offering the backing of the digital form of liquidity.
An unexplored potential
The need to adapt to contemporary standards is definitely something that Canada is trying to do with this move. Since countries that seem to benefit the most from these cryptocurrencies are the ones who are dealing with other financial challenges, like improper banking services or the limited access to these facilities, Canada is definitely not on the same page as some other countries. The population seems quite satisfied with the current payment services. But this might not stay this way for much longer as the need for faster and more secure services, with lower fees and higher levels of convenience become more pressing to the Canadian citizens.
Stablecoin will be kept in equal numbers to QCAD to maintain balance and to avoid overwhelming the system. All in all, Canada is choosing to play it as safe as possible and the National Bank of Canada seems to share a similar attitude. As the news about the new QCAD came out the bank of Canada also announced they would be open to the idea of introducing a CDBC- Central Bank Digital Currency, in case the demand for such services would become stronger, but nothing more concrete. The bank said that in theory, they would be open to launching their own CDBC if the cash becomes less popular or gets completely eliminated. Also if the cryptocurrencies that are accessible right now for Canadians would suddenly become undependable. These scenarios are also quite unlikely to happen in the near future, even tough with currencies you never know.
All in all, Canada is finally waking up to the potential of this new industry. The banks and local blockchain companies alike are beginning to get more proactive in this regard. Launching a Stablecoin is a very good first step that will likely attract more people to the cryptocurrencies and in return more opportunities to explore the industry further will arise.