TL;DR Breakdown
- VersaBank is set to launch a new digital currency that represents the Canadian dollar in the coming months.
- The digital dollar currency, VCAD will be the first digital currency issued by a bank in North America.
A digital dollar currency is set to be launched by a Canadian bank within the space of some months, according to a statement made on Wednesday. The digital currency created by VersaBank will be associated with Canadian fiat currency used to make transactions in the bank.
The VCAD, as it will be called, will be the first stablecoin distributed by a bank in North America. What more is that the currency will represent a traditional currency — Canadian dollars. Like USDT, the VCAD is a stablecoin, and the idea to launch it was initiated in partnership with Stablecorp in Canada.
Reports state that the digital dollar currency will be made available for the general public by negotiating with financial investors who will exchange VCAD for Canadian dollars. After the transaction is done between VersaBank and investors, the digital dollar currency will be distributed to the public.
The digital dollar currency made to tackle drawbacks
Recently, a lot of problems have affected the cryptomarket. However, there are two significant drawbacks to trading in the digital market space, which include security and volatility. According to the CEO of Stablecorp, creating a digital dollar currency will help tackle these drawbacks effectively.
After the VCAD is launched, VersaBank will proceed further with its other plans to create digital currencies representing the U.S dollar and Euro. Presently, the names for both digital currencies are set as VUS (for U.S dollar) and VEuro (for Euro).
VCAD joins a growing list of stablecoins accepted by Canadian markets
If VCAD is launched, it won’t be the only digital dollar currency or stablecoin accepted in Canada. Canada’s leading trading platform, Coinsquare, supports eCAD and TCAD tokens. Similarly, Mavennet, a Canadian blockchain technology, already has a stablecoin that represents the Canadian dollar.
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