At the Blockchain Futurist Conference in Toronto, Lucas Matheson, who leads Coinbase Canada as its CEO, announced that his firm will collaborate with Stablecorp, a Canadian entity responsible for issuing stablecoins. This partnership aims to promote their fiat-backed stablecoin known as QCAD and involves an unspecified investment from Coinbase to boost accessibility to digital versions of Canadian currency.
Matheson mentioned they asked for the
federal government
Develop a nationwide strategy for digital assets. According to his reasoning, cryptocurrencies hold strategic value; thus, they were hoping the incoming administration would acknowledge the strategic significance of these currencies.
Following the Canadian federal elections in April, Prime Minister Mark Carney was elected into office. He had earlier shown disdain for cryptocurrencies during his campaign.
Matheson highlights the necessity of a stablecoin for the Canadian market
During an exclusive interview on May 13, Matheson recognized the importance of having a stablecoin for Canadians. He went on to say that stablecoins are essential due to Canada’s lack of a “peer-to-peer payment system” and noted that wire transfers come with significant drawbacks: they can cost up to $45 and require about 45 minutes of paperwork.
Furthermore, he asserted that stablecoins enable 24/7, instant, cross-border transactions, something already achievable with existing technologies.
As per Stablecorp’s website, their latest report regarding QCAD’s fiat reserve support dates back to July 2024. At this time, approximately $175,000 worth of QCAD tokens were circulating.
As per CoinGecko data from May 13, US dollar-pegged stablecoins like Tether and USDC account for most of the $245 billion total stablecoin market cap.
Given these differences among stablecoins, Matheson highlighted the importance of developing a stablecoin specifically tailored for the Canadian market to address current issues within the payment systems.
Furthermore, Coinbase mentioned in a blog post dated March 26 that there was no clear pathway for regulation in Canada.
stablecoin adoption
, largely due to the fact that its government has not yet eliminated regulatory hurdles for fiat-backed stablecoins. The exchange also mentioned that it needs to begin viewing instruments rather than securities.
In the meantime, as stated by the US Securities and Exchange Commission in April, stablecoins used solely for payment purposes are not classified as securities within the nation.
During the elections in April, Canadian voters clearly indicated their preference for having a digital assets strategy.
Dean Skurka, the CEO and president of WonderFi, asserts that during the elections held on April 28, Canadian voters indicated their desire for the government to address issues related to cryptocurrencies. Following this logic, he suggests that these concerns might be tackled if regulators emulated the approaches taken by U.S. and European authorities to create conditions that encourage blockchain innovation.
Moreover, during that same period, Canadians looked forward with great interest to the policies concerning digital assets proposed by their political leaders, ahead of the upcoming national elections. This anticipation stemmed from the fact that millions of Canadians were involved in cryptocurrencies—either through ownership, usage, or employment—which had become a crucial sector for technological advancement and economic expansion.
The majority of this engaged group were younger than 50 years old, giving them significant influence as a political power. There was potential for lawmakers during both the elections and the administration to address citizens’ wishes for clear guidance on Canada’s digital future.
In 2022, Pierre Poilievre, who leads the Conservative Party, saw an increase in support after endorsing Bitcoin and decentralized finance. This move was intended to empower individuals with greater financial autonomy, thereby reducing political and banking influence over them. His objective was to position Canada as a global hub for blockchain technology and encourage citizens to adopt digital currencies like Bitcoin as protection against rising prices due to inflation.
Although he appreciates digital advancement, Mark Carney, who previously served as the governor,
Bank of Canada
associated with the Liberal Party hasn’t been convinced that digital coins like stablecoins will revolutionize the monetary system. He contends that digital currency would have a stronger and safer basis due to central bank digital currencies, or CBDCs.
He mentioned that stablecoins do not represent a groundbreaking substitute for the conventional monetary framework; rather, they serve as an expansion of it. Carney pointed out that Central Bank Digital Currencies (CBDCs) will lay the foundation for a more secure and programmable economic landscape, thereby reducing the hazards linked with digital money.
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