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Benefits of the new Coinsquare eCAD stablecoin

Benefits of the new Coinsquare eCAD stablecoin

April 5, 2019, | AtoZ MarketsAccording to the recent press release of the Canadian crypto exchange, the new Coinsquare eCAD stablecoin is expected to be released soon.

eCAD stablecoin will be supported by the local currency

One of the leading Canadian crypto exchanges emphasized that the new coin will be a reliable and stable value repository, which provides investors with an alternative to similar coins provided by the US dollar. Cole Diamond, CEO of Coinsquare during one of his latest interviews noted:

“The launch of eCAD will create the first transparent, affordable, and secure way of transferring value in Canada and beyond, without the risk of instability in the traditional cryptocurrency market.”

Despite all the optimism about the new Coinsquare eCAD stablecoin the exact date when the coin will officially be released was not announced. The new stablecoin would be available on Coinsquare, and that there is no other information announced yet.

What are eCAD and stablecoin

Stablecoin is a type of cryptocurrency which is considered stable because it linked to a real-world asset, which is usually fiat like US Dollar or Euro. Sometimes stablecoin might be backed by gold or oil. The stablecoins are considered more stable than other cryptos because their value is pegged to real-world currency.

Tether (USDT) and TrueUSD are popular digital assets that have a value equivalent to 1 U.S. dollar and are backed by dollar deposits. Other cryptocurrencies or blockchain projects often back stablecoins. Linked to Ethereum network, MakerDAO’s DAI is pegged against the U.S. dollar with access to a basket of crypto-assets as a reserve.

Stablecoins are considered as an intermediary between the crypto market and traditional investors since the support of currency, commodity, or algorithm can provide greater stability than “unbound” cryptocurrencies. As the crypto exchange ’s Coinsquare press release states, the upcoming new stablecoin dubbed as eCAD will be backed by the Canadian dollar in the ratio of 1: 1.

Where to store and exchange stablecoins?

There are a few possible options to store stablecoins safely. For example, Atomic wallet – a decentralized application with a built-in exchange and multi-asset support.

Ledger provides its users with the hardware cryptocurrency wallet to store their stablecoins. The company has already manufactured two handheld storage products, the Ledger Nano and Ledger Blue, that compatible with Tether -Ethereum-based ERC20 token.

The number of crypto exchanges that start to accept stablecoins has grown in the last years. Back in October 2018, the US-based cryptocurrency exchange, Coinbase announced the launch of their USD-pegged cryptocurrency (USDC), making it the first stablecoin available for trade on the platform. Another worldwide crypto-only exchange Binance announced on April 2019, that now it supports five stablecoins: Paxos Standard Token (PAX), TrueUSD (TUSD), USD Coin (USDC), StableUSD (USDS) and Tether (USDT).

Stablecoins demand thorough revision

The cryptocurrency community emphasized the importance of auditing for stable coin projects, as some of them were suspected of lacking appropriate reserves. Last year, the US government summoned Tether (USDT) stablecoin founders because of suspicions that the project did not have the necessary funds to support the currency in the stated 1: 1 ratio.

Last month Tether became the object of the investigation after its users noticed in the social media that the company had removed previous statements that altcoin was fully supported by US dollars. The revised policy  of the stablecoin states:

Each leash is always 100% secured by our reserves, which include the traditional currency and its equivalents, and may from time to time include other assets and receivables for loans provided to third parties by Tether, which may include affiliates”.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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