A digital dollar? Why does this Alberta company want to launch a Canadian Stabelcoin

The Calgary-based finance company has raised $ 10 million to create a digital version of Canadian dollars, with support from shopfi, wealth and national bank-pushed Canada into a global race to digitize the money.

Tetra Digital, a financial services group, is planning to launch a Canadian Stabelcoin next year. StableCoins are a type of cryptocurrency that is associated with the national currency of a country, such as Canadian dollar, or a gold -like object.

The idea is that these tokens are one-to-one digital replica of their real-world property. For example, a Canadian dollar-supported stabechoin can be exchanged for a real Canadian dollar at any time or without any extra fee in the world.

Tetra Digital CEO Didier Lavleli said, “CBC News CEO Dider Lavleli said,” There are many of us still stabechen, he said that his company believes that his company will get which he is confident that there is a demand for these digital assets. “

“If you are a Canadian business, you want to be able to transact on a Canadian-enacted vehicle or product or token,” he said.

Finally, stablecoin lawyers like Lavallee want Canadian to be able to safely use Stabecrims to pay for online purchase, and to send money without delay or additional cost to family or friends worldwide.

Those who call champions Stabelcoin come easily in trading of crypto without any instability (so their name). Exchanges are built on a blockchain, a system that records and verification the transactions between computers rather than traditional banking systems.

While it makes exchanges rapidly, it is a concern for experts who worry that like other cryptocurrency, stabechioins, security infrastructure is lacking that banks have space to detect and stop illegal financial transactions.

Push for regulation

Canadian advocates are worried that the country is lagging behind the cryptocurrency, pushing the federal government immediately to regulate the tokens so that companies have a framework to release their own Loni-supported stabuels.

The US government did this in this summer when it passed the Genius Act, opening the door to prominent American companies such as Walmart and issued a USD -backed coins.

The industry saw the move of the Trump administration on a large scale as legalizing this type of currency, while other countries saw it as a catalyst to regulate stabechoin, not that they would be left behind. Experts say that China is particularly concerned that the US will dominate the digital currency location-and re-establish a weak US dollar dominance-the USD-communized stabecoin must flourish.

The Canadian Champion of the currency has shared similar concerns, calling it a case of economic “sovereignty” for Canada, which has its own stabecin.

Lavleli said, “We like it or not, when we are transacting a US-Donomineed Stabelcoin, we are essentially supporting the US Treasury in US dollars,” Lavleli said, who explained to her perspective that Stabelcoin purchases the dollar purchases, which will make a funding of the dollar, which will make a funding from the comprehensive economy. Will help. “

StableCoins vary from digital currencies (CDBCs) issued by the central bank. Bank of Canada left plans for its own digital Loni last year, stating that it would focus on researching the global digital asset.

Ottawa needs to proceed on regulation, executes

Some officers in Canada Consider currently StableCoins for securities, a classification that has raised a large extent objections by the Crypto industry-as the approach taken by the American and the European Union, to prefer currencies regulated as e-token.

Can be regulated as securities, in many courts, it means that digital property is governed by similar laws as stock or equal investment, while laws such as laws A recent American law Instead, stabechoin issuing companies are required to issue enough “traditional” currency to refund digital currency.

Coinbase, a cryptocurrency trading platform that invests in Tetra, is one of the companies that urge Ottawa to roll the ball on an updated regulatory structure for staboin.

The coinbase Canada CEO Lucas Matheson said, “A Canadian-Sampraday Stabecoin will help with payment, it will help with cross transactions, and it will help with all forex that we have in Canada.”

Matheson said that until this point, the Canadian companies who want to release stabechoin did not need to move forward on projects that they did not need to move forward.

Because stablecoins need to be supported by physical assets, a infrastructure will include clear rules around the reserves – such as what percentage of coins can be supported by cash property versus treasury.

Tom Duff Gordon, vice -president of the International Policy at the Coinbase, said, “For a big G7 country, you want to ensure that you can project your currency, and is going to be an important part of being a stabelcoin in the future.”

“I think there are foreign investors who want to catch Canadian dollars, and in doing so (Canadian dollar-supported), regulated stabelin will be an easy (way) to do so for them.”

Doubt and uncertainty on global rules

The safety and stability of stabechines, regardless of their communities, is still a major question mark for at least one Canadian cyber-law specialist.

Toronto Law firm Capston Legal and Chair founder Brent Arnold said, “Prove me that you really have property to return it, and they are liquid property and they are stable assets.” Canadian internet society,

“If those conditions are not in place and no one is sure that they are in place, you can still end in a situation where everyone feels nothing worth tokens, there is a run on the bank and you have a collapse.”

Arnold, who practice cyber security law, says that there is still a lack of clarity how the law can deal with cryptocurrency or stabelcoin.

,When you invest in something that is treated by one country in a way and by other countries, there is friction, “he said.

However, Arnold indicated “very reliable players” including “very reliable players”, including Wealthcimple, National Bank and Shopify, that companies are responding to consumer demand.

Shopify did not respond to the CBC news request to comment on this story. In a press release, the Chief Legal Officer of WealthSimple asked Tatera’s Canadian Stabelcoin to launch “Defined Moments for Canada’s digital economy”, while National Bank’s Venture Capital Division promised that “in future needs security measures to support Canadians and Businesses.”

But Arnold says that he is still not sure someone needs a Canadian Stabelcoin, saying that he is “doubt” how much demand is in Canada for this product.

“I am still seeing a really good, compelling explanation as to why it is necessary or anything other than a solution in search of a problem.”