Table of Contents
- 1 History of QCAD
- 2 What Is QCAD Used For?
- 3 How Does QCAD Work?
- 4 Where Can I Keep My QCAD?
- 5 Advantages and Disadvantages of QCAD
- 6 What Is Stablecorp?
- 7 FAQ
- 8 Conclusion
History of QCAD
QCAD is a Canadian stablecoin that is backed by the Canadian dollar at a 1:1 parity. It was built on the Ethereum blockchain as an ERC-20 token and was developed by a company called Canada Stablecorp Inc. It is the first mass market, fully-compliant CAD stablecoin.
The coin is housed on Stablecorp, a network that manages crypto assets and also works as a blockchain solution developer. QCAD was the first product to be released by Stablecorp and the first for the mass market. It was launched on February 11, 2020. According to Netcoins, QCAD was launched with $150,000 Canadian dollars worth of cryptocurrency into the market.
What Is QCAD Used For?
This stablecoin can be used for a variety of reasons. Let’s take a look at what some of these are.
Sending money the traditional way can be costly and time consuming. QCAD can be sent all over the world quickly and cheaply. Canadian dollars vs US dollars are the fifth most traded exchange pair in the world. This alone reflects just how in demand Canadian dollars are for exchanging.
Bridging The Gap
QCAD can be used as a bridge asset between crypto and fiat.
This stablecoin is different to others on the market as it is bought and sold at a cost of one dollar each by a host of Authorized Dealers. Most stablecoins keep the value of the coin stable through the use of bots that are able to process a high number of transactions very quickly.
How Does QCAD Work?
QCAD stablecoins are directly linked to fiat; in this case the Canadian dollar. When a user buys QCAD, fiat is deposited in a separate account and used only for the purpose of QCAD. The deposit amount is based on the amount of QCAD in circulation. This means $1 Canadian dollar for $1 QCAD.
When a token is requested, it activates a verification process in which the token is issued and then sent to another buyer’s email address. For example, if you were to sell QCAD back to Stablecorp, the tokens would be sent to a Stablecorp smart contract. Once they have been received, they are immediately burned. The money from the deposit account is sent straight back to you.
Where Can I Keep My QCAD?
Storing your cryptocurrency in a wallet is essential. Never leave your coins in an exchange as they are deemed unsafe.
Soft wallets offer protection against your assets. However, if you have a large quantity of coins, a hard wallet is your best bet and will give your funds an extra layer of protection.
Advantages and Disadvantages of QCAD
One advantage of QCAD is that it is regulated which ensures you are trading inside a safe network. It is important to note however, that no coin or platform is without risks. But a regulated stablecoin is better than nothing, right?
It is also useful to point out that stablecoins in general are less volatile than other coins like Tether or Bitcoin. Stablecoins are a great way to get to grips with the world of crypto.
A downside to QCAD is competition. There are a lot of stablecoins on the market and therefore, there is a lot to compete with.
If you are looking to get rich quickly, QCAD probably isn’t the best choice for you. Stablecoins do not tend to shoot up in price quickly like other cryptocurrencies. They stay as stable as the fiat they are backed with.
What Is Stablecorp?
Stablecorp is a leading fintech firm that builds bank grade blockchain technology. The firm works with 3iQ (Canada’s first ever multi-crypto-asses-fund manager) and Mavennet (an organization with phenomenal expertise on blockchain and AI (Artificial Intelligence) technologies.
In February 2021, Stablecorp introduced a new stablecoin to the network known as VCAD.
Is QCAD regulated?
Terrorism financing and money laundering are two huge concerns when it comes to payments and assets. So having a way to regulate this is key.
QCAD is registered as an MSB (Money Service Business) with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). FINTRAC detects and prevents money laundering and the financing or terror organisations.
This provides reassurance to newcomers and users giving QCAD a trustworthy image.
Do stablecoins like QCAD reduce the amount of time it takes to move between crypto and fiat?
Yes, traditionally payments and transactions have been processed by banks which can be long winded. Not only is this time consuming, it comes with expensive fees, particularly for B2B businesses that need to pay or receive payments from overseas clients and vendors.
Stablecoins like QCAD aim to reduce these time consuming and expensive processes while still regulating the process just like a traditional bank system would.
What blockchain does QCAD run on?
QCAD is an ERC-20 token that runs on the Ethereum blockchain.
Does QCAD have the potential to gain more value over time?
Absolutely. Stablecorp is essentially trying to break the barrier between traditional banks and digital asset managers. If this takes off, QCAD will become more valuable as it gains more users. The more QCAD you invest in, the more Canadian dollars you will have deposited into your account.
QCAD is a stablecoin used as an ERC-20 token that runs on Ethereum. It can be used for sending transactions and bridging assets from fiat to cryptocurrency.
Backed by the Canadian dollar, QCAD has potential as the Canadian dollar vs US dollar are one of the most popular trade exchanges in the world.
Predictions for QCAD look optimistic, however a prediction is just that and nobody knows for sure what will come of this stablecoin.