Another day, another dollar-backed cryptocurrency stablecoin. This time, the Blockchain Venture Capital Inc. (BVCI) has launched CUSD — the first legally delivered USD-stablecoin in Canada.
The cryptocurrency is supplemented by a mobile wallet called Bvc Pay which is used to store, exchange, and trade CUSD over-the-counter (OTC).
Stablecoins for Dollar Parity
The same company also developed the world’s first stablecoin pegged to the value of the Canadian dollar (CAD) — first launched on Canada Day back on July 1, 2019. Known simply as CADT, the CAD stablecoin was designed as a way to allow Canadian individuals and businesses to easily enter the world of digital finance.
The cryptocurrency was built on BVCI’s custom-developed decentralized blockchain which uses a combination of Ripple and Ethereum technologies. Both CUSD and CADT use BVCI’s BVC-chain, which enables transactions to be completed fast, securely, and at a much lower cost than traditional money remittance platforms.
BVCI also promises that BVC-chain and its associated digital assets can be used to complete private cross-border transactions, though it remains unclear which KYC requirements BVCI enforces to acquire CADT or CUSD for the first time.
Nonetheless, despite launching two fiat-backed stablecoins, BVCI’s offering doesn’t appear to have gathered much support. As it stands, the Android version of its wallet has just over 50 installs, while the iOS version has also seen little adoption.
Joining the Stable
CUSD joins the growing list of stablecoins that are anchored to the U.S. dollar, and is up against heavy competition, including the likes of Tether (USDT), USD Coin (USDC), Paxos Standard (PAX), TrueUSD (TUSD) and Dai, each of which have market capitalizations in excess of $100 million. There are also several less prominent USD-backed stablecoins, with the USD being the most frequently pegged fiat currency by a wide margin.
However, BVCI’s CUSD differs from other platforms since the company is compliant with all federal regulations that relate to the transmission of virtual money. Similarly, the company is fully transparent with its operations, with the number of USD held in its escrow account being reconciled and published every day, helping yo ensure users that the number of circulating CUSD is consistent with the funds held in escrow.
Though this might sound like an absolute necessity for anybody to trust a stablecoin, other prominent USD-backed stablecoins like Tether have failed to provide a simple bank account audit, which proves the number of USD held in reserve.
As of yet, it remains unclear whether CUSD is supported by any external exchange platforms, or whether it is currently constrained to its own mobile wallet.
Images courtesy of Shutterstock.
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