Coinbase has joined forces with Canadian stablecoin provider Stablecorp to broaden accessibility to digitized Canadian dollars, according to an announcement made by a company representative at the Blockchain Futurist Conference in Toronto, as shared with Cointelegraph.
The CEO of Coinbase Canada, Lucas Matheson, has stated that the company is putting money into Stablecorp without revealing the exact figure. They plan to assist in promoting their Canadian dollar-pegged stablecoin known as QCAD.
“It’s crucial that we establish a stablecoin for Canadians,” Matheson stated during an exclusive talk with Cointelegraph on May 13. He further emphasized that stablecoins are particularly vital due to the absence of a peer-to-peer payment system within the nation and the high costs associated with wire transfers, which can amount to $45 and require up to 45 minutes of documentation.
“He stated that with stablecoins, instantaneous and borderless transactions can occur around the clock, which is now achievable using current technology.”
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Barriers to adoption
As of May 13, the total market capitalization of stablecoins stands at approximately $245 billion, largely made up of U.S. dollar-pegged stablecoins like Tether.
USDT
) and USDC (
USDC
), according to
data
from CoinGecko.
The latest report from Stablecorp regarding QCAD’s fiat reserve backing is from July 2024, as stated on their website, indicating that approximately $175,000 worth of QCAD was circulating at that time.
Nevertheless, “Canada does not have a defined route for the acceptance of stablecoins” partly due to the fact that its government has not yet “eliminated the hurdles posed by securities regulations for fiat-collateralized stablecoins,” as stated by Coinbase.
said
In a blog post dated March 26, the exchange emphasized that they need to start “viewing them as payment tools instead of securities.”
In April, the U.S. Securities and Exchange Commission stated that stablecoins cannot be classified as securities within the nation if they are promoted this way.
exclusively for executing transactions
.
“We’re urging the federal government to create a nationwide plan for digital assets. Cryptocurrency is crucial, and we trust this new administration will recognize its importance,” stated Matheson.
Canada appointed Governor Mark Carney as prime minister following its federal elections in April. Carney has
traditionally viewed cryptocurrencies with skepticism
.
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