Coinbase, one of the world’s most popular cryptocurrency exchanges, has announced plans to offer a stablecoin pegged to the Canadian Dollar. This type of cryptocurrency is designed to minimize the volatility of the price of a stablecoin in comparison to some “stable” asset or a basket of assets. Stablecoins can be pegged to a currency or exchange-traded commodity.
A Canadian Dollar-pegged stablecoin would potentially offer many benefits to users such as reduced volatility, improved liquidity, and a secure way to digitally store Canadian Dollars. This would make it easier for users to trade and transact in cryptocurrency while still using a currency they are familiar with. Such a move would likely boost Coinbase’s profile in Canada and could increase adoption of cryptocurrency in the nation.
It’s important to note that details such as when the stablecoin will launch, how it will be implemented, or what it will be named have not yet been disclosed by Coinbase. While the intention has been announced, the specifics of the operation are still in development.
