Coinbase backs Canadian stablecoin issuer
Coinbase has partnered with Canadian stablecoin issuer Stablecorp to enhance access to tokenized Canadian dollars. Coinbase Canada CEO Lucas Matheson announced an undisclosed investment in Stablecorp to promote its fiat-collateralized stablecoin, QCAD. Matheson emphasized the necessity of a stablecoin for Canadians due to the lack of peer-to-peer payment systems and high costs associated with wire transfers. He highlighted that stablecoins could enable instant, borderless payments. As of May 2023, stablecoins had a market capitalization of approximately $245 billion, mainly from US dollar-backed options. However, Canada faces challenges in stablecoin adoption due to regulatory barriers, as the government has not classified fiat-backed stablecoins as payment instruments. Matheson urged the federal government to create a national strategy for digital assets, especially under the new administration of Prime Minister Mark Carney, who has been critical of cryptocurrency.
