Canadian bank VersaBank plans to launch a digital currency called VCAD, which will be backed by Canadian dollars deposited with the bank in a 1: 1 ratio.
VersaBank executives announced that VCAD will be “the first digital currency issued by a Canadian bank to represent a fiat currency.” To this end, the bank has partnered with Canada Stablecorp, a joint venture between investment fund manager 3iQ and Mavennet. Last year, Canada Stablecorp announced the development of the QCAD stablecoin based on the Ethereum blockchain.
The stable cryptocurrency VCAD will be available in the coming months. It will be issued to VersaBank’s financial partners in exchange for Canadian dollar deposits. Stablecorp CEO Jean Desgagne said the digital currency is being developed to address two major flaws in the cryptocurrency market – unnecessary volatility and security threats.
In the future, it is planned to launch other digital currencies pegged to the US dollar and euro – VUS and VEuro. However, VCAD won’t be the only stable cryptocurrency backed by the Canadian dollar. In 2019, Coinsquare launched the eCAD stablecoin, and TrustToken introduced the TrueCAD stablecoin (TCAD). Both cryptocurrencies are backed by the Canadian dollar at a 1: 1 ratio.
As a reminder, VersaBank successfully tested digital storage for cryptocurrencies a few years ago. According to the bank’s management, its employees do not have access to the assets located in the “virtual safe”.
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